Lending Library

Along with the growth and diversification of the US economy came the need for more organization and data relating to tracking registered businesses. The Department of Labor, Chamber of Commerce, and Census Bureau were all curious about the trends of businesses within different industries.

With these goals in mind, the government developed codes for company identification. Learn more about SIC codes and NAICS codes below. 

What Is a SIC Code?

SIC stands for Standard Industrial Classification and refers to a 4-digit coding system that categorized businesses based on their activities. These codes differentiate macro industries (like mining versus agriculture) along with smaller differences (like soy farming versus corn farming).   

SIC codes were created by the United States government in 1937 to better analyze economic activity across the country. 

What Is a NAICS Code?

NAICS codes are very similar to SIC codes. In fact, NAICS (North American Industry Classification System) replaced the SIC system for the most part in 1997. The NAICS code was developed as part of the North American Free Trade Agreement with the United States, Canada, and Mexico. 

NAICS codes are 6-digit codes that identify your business type. You will use your NAICS code for a variety of purposes to identify your industry.

How Do I Find My Company’s SIC Code?

The US Department of Labor has a SIC code lookup tool you can use. You can either search by SIC code or enter a few keywords to find the SIC code you need. This database uses the 1987 version of SIC guidelines.  

How Do I Find My Company’s NAICS Code?

The NAICS Association has a code lookup tool and a company lookup tool. You can identify your newly formed company with this search system or look up codes for your existing business. The website starts with high-level categories and lets you drill down to specific industries and business types. 

Know Your SIC and NAICS Code

If you work for a modern business, you might not have a SIC code. You might just use the NAICS system. This is a self-identification system, so you can label your business as you choose. It is important to know your NAICS code to set up certain financial accounts and to report your business to the government. 

The entrepreneurial traditions of America often idolize individuals who built companies that would ultimately bear their names. We all know about Henry Ford, John D. Rockefeller, and Cornelius Vanderbilt—but can anyone name a single executive who served alongside these leaders? Probably not because there sadly isn’t much room for additional names in the pantheon of success. Triumphs are attributed to the person whose name is on the front of the building, regardless of who is truly responsible for them.

If there’s a benefit to these myths, it’s that young people can easily identify role models. By learning about legendary strategies and innovations, these aspiring business owners can begin to gain their own momentum long before they file for a business license.

But many issues arise from misguided hero worship. It disenfranchises thousands of talented contributors while also lionizing flawed individuals who might not be deserving of such lavish praise. And, most troubling, it continues the centuries-long process of driving a wedge between the elite of business and their employees.

“The gap in wealth in the United States between the ultrawealthy and everyone else has reached its widest point in decades,” reports research by Peter Walsh, Michael Peck, and Ibon Zugasti, a trio of financial experts. “One way to narrow the divide is through the use of worker buyouts, in which ownership of a company transfers from a single person or a small number of people to the workers of the company. Currently, about 10% of Americans hold equity stakes in their workplaces. By providing more workers and employees with opportunities to buy shares, companies can help workers and communities raise their standard of living and simultaneously feel more invested—literally—in the success of the enterprise.”

There’s a symbiotic relationship that occurs in employee-owned companies. First, the employees are empowered through ownership. They are given more opportunities to thrive financially, which benefits their families and communities. In this way, the wealth gap loses some of its sting, as the positive impacts of employee ownership ripple out through future generations.

As with business changes like embracing remote-work arrangements or offering mental health benefits, there are definitely some up-front costs associated with forming an employee-owned company—but rest assured that they can be more than repaid over time. For example, employee-owned companies often outperform their competitors. And they really show their mettle during times of duress, such as the lockdown of 2020. When employees have skin in the game, it stands to reason that they’re more motivated to dig in and find solutions.

So rather than a 1-sided deal, employee ownership becomes another entry in the Michael Scott Win-Win-Win Hall of Fame. In reality, any business owner who views employee ownership as an outright threat probably hasn’t done any research.

What Is an Employee-Owned Company?

While nearly all business owners compensate their employees with money, an employee-owned company also provides them with stock. But it’s not just any stock—it’s stock in the company where they work. This means that an Employee Stock Ownership Plan (ESOP) makes employees shareholders, giving them a powerful incentive to perform.

According to the National Center for Employee Ownership, the number of employee-owned companies is on the rise. Check out these key statistics:

• There are 6,501 ESOPs in the US
• Their assets exceed $1.4 trillion
• ESOPs have 14 million participants
• 22% of ESOPs are in the manufacturing industry
• 19% of ESOPs are in the science and tech industry
• Texas has the most ESOPs, followed by California and Florida
• Wyoming has the fewest ESOPs

The nuts and bolts of running your ESOP can be customized to your business. For example, you might want to determine the compensation of stock by how long each employee has been with your company. Another option would be to base the stock compensation on your employees’ hourly pay or salary.

Likewise, you can choose whether to have a gradual vesting period (such as a 20% increase every year for 5 years) or a 3-year waiting period before a total vestment. Employees can then hold onto their stocks until they choose to sell. Both of these approaches have unique benefits, so it’s important to talk to your business mentor and other experts to gain insights on how to proceed.

The Broader Benefits of Employee-Owned Companies

Because of the devastation of the COVID-19 pandemic, the United States could definitely use the collaborative boosts provided by ESOPs. It’s a chance for employers to share the rewards of success in a new way, which makes it possible for everyone to prosper.

“Within the next decade, we expect worker- and employee-owned companies to grow in popularity thanks to 3 mutually reinforcing trends,” explain Walsh, Peck, and Zugasti. “First, renewed interest in ensuring the economic viability of local communities suggests that baby boomer owners about to retire are increasingly likely to want to sell to workers. Second, evidence is mounting that worker- and employee-owned enterprises outperform their competitors, especially during economic downturns; a recent Rutgers study found that converting to worker and employee ownership boosts profits by as much as 14%. Third, as a result of strong performances by worker- and employee-owned companies, it is becoming easier for workers to overcome arguably the biggest hurdle to worker buyouts: financing.”

As ESOPs become more commonplace, you can anticipate a corresponding rise in interest from employees at companies that aren’t following that model. If your business is considering it as an option, this is a great time to conduct more research and see if it’s a wise move.

Perhaps you have compelling reasons not to transition to an ESOP—that’s completely understandable. Just be prepared to communicate those reasons to your employees, helping them to see your perspective and including them in your conversations regarding the topic.

They’re strategic partners and invaluable assets with unbeatable wisdom and experience beyond their years. And they love helping small businesses grow and succeed. 

Many entrepreneurs lack the capital they need to grow their businesses. They know what it takes, but they don’t have the funds to bring their vision to life. And that’s where these people come in—as investors. 

For small business owners, your business is like your baby—you were with it from the beginning. You nursed it from infancy, took care of it, and watched it grow into what it is today. 

You built it into a healthy and thriving business. It’s so strong that it’s given you your livelihood and allowed you to provide for your family. But now you need a little help. Because you know what it can be, and you’ve taken it as far as you can on your own. 

Taking on an investor can be scary, but sometimes it’s necessary. In this article, we’ll talk about how you can find the right investor for your small business. But first, we’ll go into the benefits of working with them. 

How Investors Help Small Businesses

The value of an investor goes far beyond the money they provide. When you work with one who has experience in your industry, they can offer their acquired knowledge and expertise—and teach you things that might have taken you years to learn on your own. Some even seek out new entrepreneurs so they can pass on their knowledge and assist in the beginning stages of growth.  

Seasoned investors can guide you to keep you from making mistakes. You can also use them to vet ideas as you consider new business avenues worth pursuing. 

Another thing about investors is that they can offer you invaluable connections. Some may be able to introduce you to the right people—and get you into the inner circles of people who were out of reach before. 

How to Find Investors for Your Small Business

The funding to start, manage, and grow your business does not need to come from you alone. You can acquire it from a variety of sources—investors included. Below, we’ve got some helpful advice on how to find an investor for your business. 

Start With Your Family and Friends

Nobody knows you better than your family and friends. When they see potential in you and believe in your idea, they may be the first ones to invest. Especially if you already have a proven track record or you’re known for doing something exceptionally well. 

Here’s an example: let’s say you’re the best baker in town. You’ve competed against your peers, won numerous awards, and you’re always the first one people think of whenever they have a taste for a delicious sweet treat. 

When you get the idea to open a pie shop, you may not have to look beyond your inner circle—full of people who know you, love your products, and know firsthand how amazing they are. 

An investment from family and friends is often one of the easiest to get. You don’t have to jump through hoops or cut through red tape like with other options. You could also raise money from multiple friends and family members. Every little bit you raise will get you one step closer to your goal. 

Seek an Introduction From One of Your Connections

If you don’t have any friends or family with the ability to invest, take a step back and consider their connections. Could they possibly secure you a powerful introduction?

An introduction to a potential investor will go much further than if you were to contact the person on your own—either through cold emailing or some other means. And you never know who your friends are connected with. Maybe you have a cousin who works for a large investment company or a friend who can connect you with a startup assistance group. 

Or better yet, maybe you know another successful entrepreneur who can vouch for you. This will go a long way for an investor who relies heavily on the word of other business owners—especially those they respect and have worked with. 

Reach Out to Schools and Other Businesses in Your Industry

Consider how many people you know in your line of work. No doubt you’ve probably met others at industry events or bumped into business owners in your hometown. You might even belong to online groups full of people in your industry. 

Try connecting with some of them to see if you can get a referral or a recommendation. You could also reach out to schools and learning institutions in your field. The professors and heads of the many different departments may be valuable resources for getting you in touch with willing investors. 

Try Crowdfunding Platforms 

Crowdfunding platforms provide a means to help individuals and businesses by allowing them to raise the funds they need online. Here are all the different types of crowdfunding platforms, along with examples of each one. 

Reward-Based Platforms

Reward-based crowdfunding asks people to contribute a certain amount of money in exchange for some reward. Usually the reward relates to the business in some way—people get to try the product in exchange for investing. Kickstarter and Indiegogo are examples of this. 

Here’s how it works: Let’s say you’ve got a doughnut shop and you want to raise $500. Each person who invests $15 gets a dozen donuts. Those who pledge $25 get 2 dozen donuts, and people who put up $50 get 3 dozen donuts plus mocha iced lattes. 

Donation-Based Platforms

With donation crowdfunding, the money contributed is not expected back. People give willingly, usually with the desire to help fund a particular project. The purpose can be for anything from raising funds to help a struggling family or providing emergency assistance to an entire community. 

GoFundMe is a great example of donation-based crowdfunding. 

Peer-to-Peer Lending 

Peer-to-peer lenders match businesses needing money with investors. Applicants start the process by filling out an online form, and lenders give the potential investors a credit score for the business. Then the decision is made on whether to lend the money. 

This option appeals to investors because it allows them to receive their money back on a monthly basis—with interest included. Borrowers typically pay less than they would if acquiring a bank loan, and the investor earns a higher return than through a typical bank investment product. 

The risk to the investor is serious in the government doesn’t protect it. Examples of peer-to-peer lending include Lending Club and Prosper. 

Equity-Based Platforms

With equity crowdfunding, investors take partial ownership of the company. The original investment is not paid back, but it’s returned to the investor in the form of shares in the company. They also receive a share of the profits. 

Investment amounts typically start in the thousands of dollars. This makes equity-based crowdfunding a much riskier option for the investor because a return isn’t guaranteed. 

OurCrowd is an example of an equity crowdfunding platform. 

Be Strategic When Networking

Start by thinking of ways to connect with the investors you want to attract. Consider where they hang out—both in person and online. What groups do they belong to? What extracurricular activities do they enjoy? Then think of how you can become a part of those groups.  

Networking with the right people opens doors that might have been closed before. Your alumni network might also be a good starting point for finding investors. You can then look into trade organizations or your local chamber of commerce. Another resource is your local Small Business Development Center (SBDC). 

Please note, networking is valuable, but only when you do it right. Start networking by attempting to be of service. Allow people to trust and get to know you. Don’t go in with a blatant sales pitch that will turn people off. 

Apply for a Small Business Administration Loan

The Small Business Administration (SBA) is a government organization focused solely on helping small businesses. The agency itself does not lend out money, but they have a lender match tool on their website. This helps businesses find lenders who are approved by their organization. 

The SBA will also guarantee loans and offer lower interest rates, and they’re helpful in other ways too. Their website is full of helpful tools for entrepreneurs. It’s full of resources to assist everyone—from those in the business planning stages to entrepreneurs needing help to grow their businesses. 

Should You Get Investors for Your Business?

There is no right or wrong way to get an investor for your business. Some methods may take more effort than others. You might even consider options we didn’t list—like working with angel investors. 

Don’t let a lack of capital keep you from your goals. Consider first how much you need and then decide on a course of action. You may go with one method listed above or combine a few different strategies. It’s about what it takes to fulfill your business goals. 

No one knows your business better than you do—and your journey is like no one else’s. So go through every option you can to find the best solution for you.

After your 5th (or 6th, or 7th) Zoom meeting of the day, you may feel like you’re just talking to yourself, especially when there’s a mix of people on calls with cameras on and off.

While video conferencing tools like Zoom make it much easier to collaborate with coworkers remotely, it can also lead to “Zoom fatigue,” which refers to the mental and physical exhaustion you feel after taking a video call. That’s because your brain has to work harder to process information with video, from facial expressions, time lags, and the general feeling of being “on” for hours at a time without a rest.

“It’s similar to what we tend to think of as exhaustion or burnout,” Krystal Jagoo, MSW, RSW, told Healthline. “Increased cognitive demands of video conferencing communication [means] folx need to create the illusion of eye contact while also mentally processing their verbal communication.”

With so much Zoom fatigue, would it be better to keep cameras off? 

Why you should keep your cameras off.

For a growing number of people, the answer is yes.

“In person, we are able to use our peripheral vision to glance out the window or look at others in the room. On a video call, because we are all sitting in different homes, if we turn to look out the window, we worry it might seem like we’re not paying attention,” writes Liz Fosselien for Harvard Business Review. “Not to mention, most of us are also staring at a small window of ourselves, making us hyper-aware of every wrinkle, expression, and how it might be interpreted. Without the visual breaks we need to refocus, our brains grow fatigued.”

Turning cameras off is a simple but effective way to reduce Zoom fatigue, but it also takes the pressure off on appearance—both in terms of looking engaged but also keeping a squeaky-clean background, worrying over dogs or housemates strolling through the frame, and personal appearance.

An ongoing meme speaks to this anxiety. What started as a joke account rating celebrity Zoom backgrounds now has over 400,000 followers on Twitter, adding to the idea that everything has to be “perfect” and eliminating boundaries between work and home.

New Room. Love the California bear pillow. Chairs. Depth. Books. It werks. 10/10 @ProfMMurray pic.twitter.com/VcA22gbsw1

— Room Rater (@ratemyskyperoom) June 6, 2021

But that’s not the only reason. Turning off your camera can actually help the environment, too. Keeping cameras off can reduce the carbon footprint of virtual meetings by up to 96%. That’s because streaming high-definition content requires significant data processing, which uses electricity and other forms of energy.

One hour of videoconferencing emits 150–1000 grams of carbon dioxide and requires up to 12 liters of water. While this is still better than carbon emissions from gasoline, which emits about 8,887 grams in the same timeframe, it’s not nothing.

“The internet’s carbon footprint had already been increasing before COVID-19 lockdowns, accounting for about 3.7% of global greenhouse gas emissions. But the water and land footprints of internet infrastructure have largely been overlooked in studies of how internet use impacts the environment,” Yale senior fellow Kaveh Madani shared in a press release. “Banking systems tell you the positive environmental impact of going paperless, but no one tells you the benefit of turning off your camera or reducing your streaming quality. So without your consent, these platforms are increasing your environmental footprint.”

Why you should keep your cameras on.

Not everyone is in camp camera-off for exactly the same reasons why we all jumped on Zoom in the first place: keeping cameras on makes you feel more connected to the person you’re talking with. 

“Turn the focus back to what you are saying and how you are saying it. Your message and how you are delivering it will take the pressure off your appearance and allow you to be present on camera,” writes public speaking coach Vanessa Wasche for Fast Company. “Most people are more comfortable without the camera, but you can use this to your advantage.”

If you’re giving a presentation, working through a tough problem, or simply want to feel more present in a meeting, it’s best to turn your camera on if you want to get your message across more clearly. Cameras on is the best approximation we have for in-person meetings, especially the nonverbal cues like hand gestures, smiles, and nodding. 

For others, keeping cameras off feels rude or inappropriate.

“Most times, when people turn off their video options in a Zoom meeting, it is because they are doing something else while the meeting is going on. Or because something else is wrong; either they are not appropriately dressed, or they are in the wrong environment, or are not adequately prepared for the meeting,” writes communications expert Jaime Abbott. “[It feels like you’re not prioritizing] the other participants in the meeting.”

So, what to do?

Your colleagues may be completely burned out on video conferencing, and that’s OK. Whether you’re planning a hybrid approach or a full return-to-work plan, it’s important to get a pulse check on your teammates or direct reports and figure out what’s best for them.

If you’re not sure whether to keep cameras on or off, try:

• Determine ahead of time whether the meeting needs to be a Zoom (for example, for a strategic or brainstorming meeting) or if a phone call will suffice (for status updates, all-hands, or 1:1s).
• Schedule breaks from video calls for yourself or implementing a policy with calls ending on the :45 or :50 as the norm, rather than the full hour.
• Encourage standard backgrounds or blurring features for employees to prevent background-gawking or pressure. 
• Keep virtual meetings smaller. The more people on the call, the more pressure. Think mindfully about who will best contribute to the discussion and if everyone needs to be there.

Whether you turn your camera on or off, the most important thing is to stay mindful of yourself and others. While it may seem like you’ve been Zooming for years, it’s still relatively new for most people—and like any new technology, our norms and etiquette will evolve.

10. Construction and development.

Over the past few years, more people have opted to move to small towns from big cities. These towns are typically more affordable and offer more space for families. The COVID-19 pandemic only exacerbated this trend by allowing people to work from home. Now people from all backgrounds are choosing homes in less populated areas. 

Now may be a great time to start a construction or development business if interest in your town is growing. You can help your chamber of commerce keep up with demand and help your town grow into a thriving center within your region.

Are you dreaming of becoming an entrepreneur? Could your skill set or experience help other small businesses? Do you thrive in a fast-paced, ever-changing environment? Are you known for your collaboration and networking skills?

If that describes you, read on to learn how to start your own consulting business. You can go all-in as a full-time endeavor or ease into it as a side hustle or a freelance opportunity.

How Lucrative Is Consulting?

The million-dollar question—how much do business consultants charge? In other words, will you make a profit as a small business consultant? Or, as your potential client may ask—are business consultants worth the money?

The short answer is yes. Business consulting can be lucrative for anyone consulting in a growth industry or who has specialized skills. And the right consultant can provide significant benefits to the companies that hire them.

How much business consultants charge varies widely based on a variety of factors. Specialized services and experts in an in-demand field (e.g., business resilience or digital-first operations post-COVID) can command a higher rate. A consultant’s rate also depends on what customers are willing to pay.

Our guide to small business pricing can help you set your consulting rate. Charge too much, and you could price yourself out of the market. Charge too little, and potential clients will think you provide lower quality services.

We’ll cover pricing strategy in more detail later in this guide.

Why Do Businesses Hire Consultants?

A small business consultant provides a service or fills a void for their clients. That could include:

• Leading a specialized project (e.g., a software implementation)
• Training management or employees (e.g., a diversity workshop series)
• Augmenting staff (e.g., backfilling an employee on parental leave)
• Initiating change (e.g., you don’t know what you don’t know)
• Scaling a business process (e.g., helping another business expand)

Those aren’t the only services business consultants offer. Small business owners frequently need expert help, and your skills may be just what they need.

Type of Business Consultants

Business consultants work in a variety of industries. Some skill sets (e.g., computer skills) are valuable across multiple sectors. In contrast, a specialized skill set (e.g., healthcare) may narrow your target market to a single industry. Some consultants intentionally focus on a specific niche (e.g., fundraising for nonprofits).

While there is no complete list of consultant types, you could be a consultant in these industries:

• Construction
• Cybersecurity
• E-learnng
• Healthcare
• Information Technology
• Longevity
• Marketing
• Nonprofits
• Retail

Steps to Start a Consulting Business

How do you become a small business consultant? High-level steps to start a consulting business include:

Figure Out Why

Before you even step into the “what,” identify your “why.”

What motivates you? What are your strengths and weaknesses? Why do you want to be a consultant?

Consulting can be a rewarding and profitable venture, but it requires you to run your own business while providing services to your clients.

That means, at a minimum, to become a consultant, you should:

If you despise project planning or creating project scopes, then consulting may not be the right fit. However, suppose you lack knowledge in 1 area (e.g., how to organize a day based on multiple projects). In that case, you could take a project management training class to offset that weakness.

Identify Your Target Market

You should identify your target market to:

The consulting services you provide are based on your skills—a registered nurse isn’t apt to set up a cybersecurity consulting business and vice versa. But the services you offer also depend on your target market.

Aim for a target market large enough to let you grab a share of the pie without being so big that you don’t know who your ideal customer is. 

Start at a high level and then dive deeper to identify the specific markets you could target. For example, a cybersecurity consultant may identify a target market of “government organizations” and then narrow that to “government organizations in cities with a population of 25,000–50,000.”

Use these questions to help identify your target market:

You don’t have to do all the research yourself. Use industry associations and local SCORE chapters or small business development centers to help. Librarians are also excellent at researching this type of information.

Create a Pricing Strategy

How much do small business consultants charge? Or, better said, what should your pricing strategy be?

Start by reviewing our guide to small business pricing. It’ll walk you through how to approach the question of what to charge.

It’s not as simple as saying, “what are my competitor’s rates” or “what should I charge to survive this year.” Your competitors may not provide the same level of service you will. You also have to determine a pricing strategy that gives you the net profit margin to support your 3–5 year vision.

Typically, a consultant’s billing rate is:

It’s unlikely you’ll have a one-size-fits-all rate. Pricing packages or bundling services together (e.g., project completion with continued support for 6 months) may be a good fit for your business model.

You may even find that a tiered pricing model works for your customer base. Following the good-better-best theory, some customers may only want support during regular business hours (“good” tier). Others may want on-demand support even on weekends and holidays (“best” tier). It’s even possible that offering a “free” tier could lead to paying customers.

You may have to run lean for a while as you reinvest your profits into growing your business. But eventually, you’ll want to take a look at how much you should pay yourself and possibly adjust your pricing strategy.

Develop Your Brand

You might read “brand” and immediately think “business name and logo.” But so much more goes into a brand, including your colors, typography, and tagline. 

Refer to our beginner’s guide to branding and take steps to ensure the brand you are creating isn’t already trademarked.

You don’t have to have your brand wholly ironed out before starting your marketing efforts. But the more consistent your brand is across all communication channels, the sooner you’ll achieve brand awareness with potential leads.

Establish a Financial Plan

To remain in business long-term, money coming in needs to be greater than money going out. Sounds simple, right? But anyone who has experienced a cash flow crunch in their personal life knows how important a financial plan is.

Our guide to getting started with business finances will get you started on the right foot. A financial plan includes:

Financial forecasting can help you avoid cash flow problems and build your cash reserves.

Write a Business Plan

Create a framework for making business decisions by writing a business plan. Outlining goals in a reference document eliminates the guesswork for future decisions. A business plan also helps boost your credibility if you seek financial funding.

A business plan includes:

Form Your Business Entity

Incorporate your business. It may offer a level of protection for your personal assets. It also signals to the IRS and potential clients that you have a business, not a fly-by-night operation.

There are various business structures to choose from, including sole proprietor, LLC, and S corporation. Our guide to understanding business structures walks you through the pros and cons of each option.

Most likely, you’ll need to apply for an Employer Identification Number (EIN). It’s necessary for some industries (e.g., working with nonprofits) and some business structures (e.g., LLC). Even if you don’t need it, it’s a good idea as you’ll avoid sharing your Social Security number with clients.

Open Business Accounts

One key to successful business finances is to separate your personal and business accounts. This eliminates bookkeeping confusion (e.g., was that ink for my home or the office?), reduces the risk of an IRS audit, and increases your professional appearance to clients.

Don’t delay on this task—open business bank accounts and a business credit card as soon as you can.

Secure Licenses

You may have to secure business license(s) and permits.

Unfortunately, there is no one-size-fits-all answer to what business licenses or permits you may need. It’ll depend on zoning regulations in your area and your industry.

Check the SBA website for industry-specific guidance, but plan on researching your state and local requirements as well. Ask your attorney for advice—some cities require even a sole proprietor to have a business license.

Pursue Certifications

Certification programs “prove” you know your stuff and may give you an edge over your competition. But certifications cost money and time to complete and usually need to be updated regularly (especially in the technology field).

If your reputation could use a boost, then by all means, pursue certification. 2 general business consultant certification programs to consider are:

If your industry smiles upon those who are certified, get certified. IT professionals tend to be certified in specific applications or development tools. Project managers may want to consider the certification program offered by Project Management Institute (PMI). HR consultants could pursue Talent Optimization’s program. If you aren’t sure what certifications may be helpful, ask industry-specific associations for advice.

You could also boost your expertise by taking online courses for entrepreneurs. These may not result in a certificate, but they can increase your knowledge base (and your contacts).

Buy Business Insurance

Your business structure didn’t provide you with blanket immunity, so use business insurance to protect you and your business.

Your needs will vary based on your specific consulting business. Your insurance agent can suggest which of these elective business insurance types (or others) you may need:

Create a Client Contract

As a consultant, you might provide boiler-plate services. But most likely, you’ll cater your services to each customer’s unique needs.

Thus, contracts are the key to keeping everyone on the same page for expectations and helping provide legal protection for disputes.

A standard client agreement template (vetted by your lawyer, of course) that you fill in for each client might be sufficient. As your client base grows, contract management software can help automate and track who has signed contracts, when deliverables are due, and when contracts expire.

Set Up Backend Processes

A consulting business isn’t just about billable hours. It also includes non-billable hours that are key to staying on top of your business’s finances.

Non-billable hours involve pitching to new clients, managing contracts and projects, invoicing for completed work, and tracking expenses. Those non-billable hours need a process to keep them from consuming your workweek.

A general rule of thumb is to hire out whatever costs less than your billable rate. If you can work a billable hour at $100/hour, and it’ll only cost you $50/hour to hire someone else to post to your social media channels, then the math looks obvious, doesn’t it?

An even better option is to automate your small business processes. For example, using email marketing tools allows you to send pre-canned responses to frequently asked questions.

The same goes for bookkeeping. For example, Sunrise can help automate expense tracking and invoicing tasks.

The free or budget packs of digital tools may be all you need initially. You can always upgrade once you hit the limits of the lower-cost options.

Market Your Consulting Business

You’ll use marketing techniques to generate sales leads and create brand awareness. When another company asks: “How do I find a small business consultant?” your goal is to be the first business that comes to mind (or to rank on the first page of search results).

Market your consulting business by:

But don’t stop there. There are many other ways to find new customers. You could become a thought leader, collaborate with other businesses, and sponsor other organizations (e.g., a local charity race).

Pitch

Spend time to create and rehearse the perfect pitch to help secure clients.

Don’t confuse pitching with marketing. Marketing creates brand awareness and generates leads. Your pitch is what convinces those leads that you are the right person to solve their problem.

As your reputation becomes better-known and your satisfied customer list grows, you may be lucky enough to have clients seeking you out.

Review

In business, nothing is ever set in stone.

Review your progress and profits regularly (this is where accurate bookkeeping helps). The challenges businesses may encounter (e.g., hiring employees, paying taxes strategically) can be met head-on with a bit of planning.

Embrace the Challenge

Starting your consulting business will take effort—remember to have fun with the process and take care of yourself. You don’t have to reinvent the wheel. Lean on the expertise of others who have started and grown their business.

Take that first step, and you’ll have a successful consulting business sooner than you expected.

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LinkedIn has been on the up-and-up for the last couple of years. What started as a basic job posting and networking site has transformed into one of the world’s most popular social media networks for everything business- and career-related.

Here’s a taste of why the platform is doing so well:

• LinkedIn is the most trusted social network in the US, with 73% of users somewhat agreeing that the platform protects their privacy and data.
• LinkedIn has grown to an impressive 722 million members—that’s a lot of people, especially since Instagram just recently hit 1 billion.
• LinkedIn has 15x more content impressions than job postings. It’s safe to say that it’s no longer “just” a recruitment platform.
• 30% of a company’s engagement on LinkedIn comes from employees—sounds like a good internal messaging tool.
• 33% of B2B decision makers use LinkedIn to research purchases—a valuable audience, especially when you consider that 4 out of 5 LinkedIn users “drive business decisions.”

With stats like these, it’s no wonder professionals are looking to build their LinkedIn following with newfound vigor. However, when everyone’s trying to do the same thing, it becomes that much harder—much like a stereotypical trip to Disneyland.

Despite the uphill battle, the struggle is worth it. Just as nobody has ever regretted a family trip to Disneyland (fact), investing time into building your LinkedIn following will always be a worthwhile endeavor. 

Whether you’re trying to build a following for your personal profile or your business page, the process is generally the same, albeit with some nuanced differences. Follow these best practices and you’ll be on your way to creating a top-performing LinkedIn account.

16 ways to build a following on LinkedIn.

1. Focus on the right metrics.

First, decide what you’re trying to achieve. Do you want hordes of followers or a small group of hyper-engaged advocates? There’s no right answer here, but it’s important to decide early on what your goals are.

In the end, you don’t want to end up with thousands of followers who don’t interact with your content. You also don’t want followers who just “like” posts but don’t interact, comment, and engage.

If you know what you’re after, go ahead and set some concrete goals. Decide how many followers you want and by when. Don’t worry too much about overshooting or falling short of this goal—any number will help to keep you accountable.

2. Post consistently (not necessarily frequently).

You’ll hear all sorts of LinkedIn gurus say that you need to post daily or twice a day or even 3 times a day. That’s all well and good—and there may be some truth to this advice—but what’s more important than frequency is consistency. You need a posting strategy that you can stick to, which will be different for everyone.

You don’t need to figure it out from the get-go, but evaluate how you spend your time on LinkedIn over the coming weeks. Are you struggling to produce content daily? Is it becoming a chore? If that’s the case, tone it down a notch and maybe post 3-4 times a week instead of every day.

Research shows that businesses who post just once per week see 2x more engagement compared to those who post less frequently. Only post daily on LinkedIn if you have value to contribute—don’t just post for posting’s sake. This leads us to tip #3.

3. Contribute valuable content.

The internet is full of enough so-so content—don’t add to the pile. If you don’t have something valuable to say, don’t say anything at all.

Diversify your content with a mix of text-only posts, images, videos, infographics, and the like. Experiment with posting studies, soliciting advice, and asking questions of your community. Check how each post performs to see what kinds of content resonates best with your audience, and then double down on those pieces in the future.

4. Be proactive with your outreach.

Just because you build it doesn’t mean they’ll come—sometimes, you need to go and find your audience. Build your following by searching for like-minded individuals in your network to connect with. A single targeted connection could be much more valuable than 100 random followers.

“You are the average of the 5 people you spend the most time with,” says Jim Rohn, an entrepreneur, author, and speaker. We’d venture to say that includes who you follow and engage with the most on social media. Follow people who’ll inspire you and influence your posting for the better. 

Be willing to engage and privately message your connections—after all, it’s about quality connections over quantity.

5. Complete your profile.

Add as much relevant information to your LinkedIn profile as possible. Here are a few things to make sure you get right:

• Headline: Come up with a non-generic, professional headline. There’s a fine balance between being creative and practical. Get too creative with a headline like “Ninja Wordsmith,” and you’ll miss out on all of LinkedIn’s SEO juice—but get too dull with a headline like “Content Associate,” and you’ll bore your community to tears.
• Profile Picture: Unless you’re an accountant, a lawyer, or a judge, you really don’t need the stereotypical white-shirt-and-tie or dress-with-a-necklace picture—and even if you are, there’s more wiggle room than you think. Be professional, but don’t be afraid to show some personality, too.
• Cover Image: Your cover image is a prime piece of real estate on your LinkedIn page—don’t neglect it. Have fun and add a call to action or display a hobby or passion. But whatever you do, please don’t leave it with LinkedIn’s default background. That’s just wasteful.
• About: Your “About” section is one of the first places visitors will look when they visit your profile. Make sure it packs a punch and tells a concise story of who you are.
• Experience: Add all your relevant work history and go into detail. Talk about what you did and what results you drove. Touch on your methodology and how you do things differently.
• Recommendations: Ask for recommendations from your peers, mentors, and managers. Much like a 5-star review on a product page, a glowing review of your personal character can add a much-needed touch of social proof to your profile.

The same goes for building out your company page. Companies with a complete, up-to-date LinkedIn page see 5x more page views, so it’s worth spending a little bit of time to ensure it’s all in tip-top order.

6. Join relevant groups.

Let’s be real—most LinkedIn groups are nothing but crickets, but a few provide valuable connections and conversations. Join a few (for quality over quantity) and engage with the community. Don’t just spam links to your own content or website—instead, add to conversations, request feedback, and build relationships.

7. Use hashtags strategically.

Hashtags help people discover topics and interesting content. However, keep in mind the difference between hashtags used and hashtags searched. For example, loads of people use hashtags like #entrepreneur, #WorkHard, or #MondayMotivation, but how often do people search for these hashtags?

Consider creating your own unique hashtag for your personal profile or business. Add it to all your posts so that followers can quickly find your other relevant content.

8. Cross-promote your LinkedIn profile.

Don’t just rely on LinkedIn to build your LinkedIn following. Consider using other channels like email, blog posts, Twitter, Facebook, guest posting, and more. You likely have contacts, connections, and audiences on various platforms—ask them all to also follow you and connect on LinkedIn.

Give them a good reason why, too. For example, you may tell them to follow you on LinkedIn to get behind-the-scenes career advice or insider knowledge on how the sausage gets made. If you’re asking your audience to do something, always give them a reason why.

9. Publish LinkedIn articles.

LinkedIn Articles aren’t quite the same thing as posts. Posts are the general updates you’ll see on your feed, while Articles are blog posts native to LinkedIn.

If you’re already publishing on a blog, consider repurposing that content on LinkedIn. It’ll spread your work to a bigger audience without cannibalizing your content.

Also, LinkedIn posts are limited to 700 characters—not always enough to convey an idea. Instead of cutting your message short, post it in a LinkedIn article instead. Search engines crawl these articles, so there’s even a chance for it to rank on Google, Safari, or Bing.

10. Encourage employees to participate.

Remember that stat about 30% of a company’s engagement on LinkedIn coming from employees? Harness that power and direct it. Don’t just leave it up to chance that your employees will follow your business page and CEO profiles—ask them to. Give them content to share, and tell them how to share it. That’s often all your employees will need to start sharing your content.

However, you can go the extra mile and start an employee advocacy program. This could be formalized with software like GaggleAMP, Hootsuite Amplify, Smarp, or Dynamic Signal—or it could be informal, with regular social advocacy updates in a Slack channel or internal company newsletter. Regardless of how you do it, leverage your employees to boost your social engagement dramatically for a fraction of the time and money.

11. Get involved with influencers.

This could be your CEO, CMO, chief of HR, or customer support agent who happens to be a popular Twitch streamer. Get creative. Ask them to follow and share company updates to boost your reach. 

12. Respond to every comment and message.

Whether you’re operating a business page or a personal profile, it’s best practice to respond to every comment and message. Of course, this will become impractical if you scale your following too large (there’s no way Gary Vaynerchuk is responding to all 553 comments he gets every day), but do it for as long as you can.

This not only extends the reach of every post—it also helps you build relationships in your community. Remember, it’s more beneficial to have 10 advocates than 1,000 unengaged “followers.”

13. Analyze your LinkedIn page insights.

Business pages have more insights than personal profiles, but both provide useful data to learn more about your content and audience. On your personal profile page, you can navigate to “Post Views” to see a comprehensive view of your content and engagement.

With a business page, you’ll get more insights into your followers, updates, page visitors, and more. Use this data to learn what kinds of content resonates with your audiences. Look at your posts to see which ones performed the best, then do your best to figure out why.

Did that post cover a unique concept? Was it short and sweet or long and detailed? Did you use a clever GIF or throw in a couple of emojis at the top? It’s hard to know the exact reason without proper A/B testing, but do your best to figure out why certain pieces of content perform better (or worse) than others. Use that knowledge to replicate your successes and avoid your failures.

14. Add a call to action (CTA).

Don’t just throw out information and content into the LinkedIn wild—tell your audience what to do with it. If you’re providing free advice, ask your audience to follow you and connect to stay up on the latest and greatest. If you’re talking about your business’s new product release, make sure you link to the free trial and ask your followers to sign up.

Every post and article you publish should have some sort of CTA—and that goes beyond LinkedIn to include all of your content.

15. Join in the conversations.

Your posts are valuable for feeding your followers content, but a great way to expose yourself to new audiences is by joining other conversations. If you see an interesting post on your feed, don’t just click “like” and move on—add your insights or feedback to the publisher.

This builds your relationship with the author of the post and helps you to engage with their followers. Every single one of their followers who reads that post will now see your comment, too. If it’s insightful, they may be tempted to visit your profile to learn more about you—and if you’ve set up your profile page right, they’ll likely follow your account.

16. Start creating LinkedIn stories.

LinkedIn is the latest platform to jump on the “Stories” bandwagon. LinkedIn Stories operate similar to Instagram, Facebook, and Twitter Stories—except they’re the newest feature to the LinkedIn platform, which means that you still have a chance to get in on the action before it becomes oversaturated. Think of it like buying Amazon stock 10 years ago.

Benefits of building a following on LinkedIn.

You’ve come to this post looking to build a following, but do you know why? What can an engaged LinkedIn following do for your business or your personal profile? Well, let’s look at the data:

• 40 million people use LinkedIn to search for jobs every week. If you’re looking to hire top-notch talent for your business (or if you’re contemplating your own career change), LinkedIn is the go-to destination. Every minute, 3 people are hired through LinkedIn—that should give you pretty good hiring confidence in the platform.
• LinkedIn boasts higher lead conversion rates (3x higher) than any other major platform, including Google Ads. Hubspot research found that traffic from LinkedIn generates the highest visitor-to-lead conversion rate (2.74%), which is 277% higher than Twitter and Facebook.
• On LinkedIn, you can become a thought leader to a relevant audience. Rather than trying to get everyone and their dog (literally, their dog) on Instagram to follow you, grow your following with the big-time decision-makers on LinkedIn. 91% of marketers turn to LinkedIn first for professional content, and 4 out of 5 users are in charge of making strategic business decisions.

Start building your following.

Don’t wait to begin building your LinkedIn following—get started today. Many of the tips we mentioned can be completed in an afternoon, while others will take weeks or months to build significant momentum. With LinkedIn quickly growing month over month and year after year, it’s a good idea to get in on the action as soon as possible.

You don’t need to build a 3-month content calendar to become an active contributor—just start posting once or twice a week. If you’re eager for more, get in the habit of posting and engaging with content for a few minutes every day. It doesn’t have to be a huge investment. A few interactions a day could lead to substantial growth in the long term.

Start small. Start now.

When we start using words like “unprecedented” to describe everyday life, I turn to my old stand-by for comfort: baked goods.

Baked goods don’t care if you had to wait in line for 45 minutes in freezing cold weather to get into the grocery store. Baked goods don’t care if you wear 2 masks on your afternoon walk in between a million Zoom calls. Baked goods are always there.

With bakeries and high-end restaurants closed in response to the pandemic, pastry chefs have started operating microbakeries out of their tiny apartment kitchens, baking sourdough, croissants, cookies, and more—using their creativity to bring people the exact kind of comfort food we all need right now.

Making dessert the main attraction.

The idea of microbakeries—food businesses started out of your home kitchen—isn’t new. What’s different now is that these microbakeries aren’t amateurs who happen to have a great recipe for chocolate chip cookies or strawberry jam. Out-of-work pastry chefs and alumni of some of America’s finest restaurants and bakeries helm the newest microbakeries.

All this is made possible by so-called “cottage food laws,” state licensing exceptions that allow home bakers to sell certain foods like jams, jellies, and baked goods without needing to undergo the rigorous permitting and health inspection process required in a restaurant setting.

“What we’ve seen in the last year is, obviously there’s a demand for dessert,” pastry chef Kelly Miao—a Dominique Ansel and Bar Boulud alum—told the New York Times. She started Kemi Dessert Bar from her Queens apartment, making home deliveries of verrines, tarts, and custard buns. “I’m not sure why restaurants don’t highlight it more, because there’s so much to offer. Desserts can be extraordinary, but [restaurants] don’t give them the chance to shine.”

For many chefs, it’s about recreating what people miss the most from pre-pandemic life. “Well, why do we do it?” Shuna Lydon, who owns Seabird Bakery out of her apartment in Brooklyn, asked the New York Times. She serves up baked goods, French toast, cinnamon rolls, and more brunch staples. “Because brunch is a thing that is very high up there on people’s list of things they miss the most.”

With start-up costs relatively low—what self-respecting pastry chef doesn’t have an oven or stand mixer in their home?—there’s a window of opportunity that many bakers feel gives them more creativity and ownership over what they make. 

What you need to start your own microbakery.

Space will be the biggest factor in what and how much you choose to sell. “Space really determines our menu. We have to be really creative not only in terms of the items but also the logistics. We have a regular fridge; you can’t fit 20 kilos of dough in that,” Miro Uskokovic, who runs Extra Helpings out of his Queens apartment with his wife (and fellow pastry chef) Shilpa, told Food and Wine. “Every corner of our home is turning into kitchen storage. We turned our second bedroom into a large pantry, where we keep several metro racks with ingredients and molds.”

You may also need to level up your equipment, as consumer-grade mixers, fridges, and work tables may not cut it. “My home mixer can make a batch of 50 cookies at a time, and on average I’m selling 600 to 1000 cookies per week,” LA-based Kirstyn Shaw of the Very Best Cookie microbakery told Food and Wine. Shaw rents space at a ghost kitchen once a week just to keep up with demand. 

A rigorous cleaning protocol—and ways to communicate that with customers—is next. Depending on what state you reside in, you may face stricter regulations on what you can and cannot sell. But taking precautions—like wearing a mask and gloves while handling baked goods and maintaining a regular cleaning schedule—matters.

Finally, even if you have the best cakes or pies in the world, it won’t matter if no one finds out. The most successful microbakeries attribute their growth to social media channels like Instagram. Online-only Kora, a Filipino doughnut shop started by Eleven Madison Park alum Kimberly Camara, already has a waitlist of 800 customers. She adds an order form to her Instagram bio every Monday at 3:00pm for the donut flavor of the week—and they usually sell out within a minute. 

A strong social media presence gives bakers the freedom to avoid third-party delivery services, which cut into already thin profit margins. It also helps with scheduling pickups or deliveries or expanding to nationwide shipping—you’ll need to decide how to get your baked goods to the masses. 

Will microbakeries last?

When bakeries and restaurants open again, will microbakeries last? That depends. Some chefs plan on turning their efforts into sit-down pastry shops, tasting rooms, or brick-and-mortar neighborhood bakeries. “Many people dream of having a business of their own,” Uskokovic told Food and Wine. “We are taking things one step at a time with the hopes that it will turn into something bigger—something permanent.”

Others hope that the model is here to stay. 

“It’s really cool and interesting to have a whole class of restaurants, basically, where the barrier to entry is much lower than we’re used to,” Marissa Sanders, who delivers savory pastries through Wrightwood & Sawyer out of her Brooklyn apartment, told the New York Times. “I hope it’s something we can hang onto. There’s a real sense of hustle, which is very encouraging and creative as people flourish in this terrible, uncontrollable situation.”