I know it’s not even close to tax season, but hear me out. Strategic tax planning affects your bottom line by helping you maximize deductions and minimize your tax liability. So, thinking about these strategies now gives you plenty of time to take action rather than scrambling in December (or worse yet, next March) when it may be too late. Trust me. Your future self will thank you.

This is the first article of a 2-part series, so my apologies if you get so excited by the time you get to the end of this article that you’re bummed you have to wait another week to finish it (hey, it could happen). In that case, spend the time between now and next week exploring the suggestions I’ve outlined here. That should tide you over. Moreover, I wouldn’t be a lawyer if I didn’t give you a disclaimer (or use the word “moreover”): this article contains general information for small business owners and is not tax or legal advice. Always consult an expert who can determine which tax strategies are best for your business and ensure you implement them correctly. 

However, handling these reviews with grace and strategy - as well as the support of a trusted advisor - can actually strengthen your brand and demonstrate your commitment to excellent customer service. 

In this two-part series, I’ll walk you through 10 effective strategies to protect your business from the impact of public negative feedback.

This week we’ll look at the first 5 strategies.

Strategy 1: Stay Calm and Assess the Situation

Most likely, reading negative feedback on social media will rattle you and you’ll feel it in your body. But it’s important to stay calm. This is not to say that your emotional response isn’t valid; it certainly is. It’s easy to take negative reviews personally, especially when you’ve put your heart and soul into your business. So if you need time to process the emotions, take the time. 

While there are many qualities that great leaders possess, one that is often overlooked is self-awareness. Having an in-depth understanding of your own strengths, weaknesses, communication styles and natural tendencies can help you maximize your potential and unlock your ability to inspire and motivate others. 

Two tools that can provide you with invaluable self-knowledge are the DISC  assessment and the Kolbe assessment. In this article, we’ll break each one down so you’ll gain an understanding of how you can use these self-awareness tools to improve your leadership skills. Let’s start with the DISC assessment. 

The DISC Assessment: Understanding Your Communication Style

The DISC assessment helps you understand your behavioral styles and preferences. It is based on the work of psychologist William Marston, who categorized behavior into four main styles: Dominance, Influence, Steadiness, and Conscientiousness. The assessment is typically taken online and consists of a series of questions that ask you to choose statements that best describe your behaviors in various situations.

They started their business in 2016 in Audrey’s parents’ basement, and with long hours, trial and error, and strategic partnerships, the brand generated over $4.5 million in sales in 2023. And keeps growing.

How did they do it? Let’s pick apart their story and see what we can learn. I’ll also throw some questions at you, so you can reflect on how these lessons impact your own entrepreneurial journey. So grab a cup of coffee (cold brew, maybe?), put on your thinking cap, and be prepared to be wowed. 

Lesson 1: Be Tenacious 

First and foremost, tenacity wins the game. Audrey and Sam faced daunting hurdles at the beginning of their business, including financial strain and uncertainty about their venture's viability. In a recent article in Entrepreneur magazine, they revealed they spent an entire summer taking their coffee cart to any in-person affair that would have them, from farmers markets to sheep-shearing events (Yep. I had no idea such a thing existed, either). The summer yielded few results and Audrey and Sam almost threw in the towel. 

But fret not! It’s possible to turn that “no” into a "yes." In this blog article, we’ll go through 8 tips to make your pitch irresistible and increase your chances of success of obtaining outside funding. Let’s get started with Tip 1, choosing the right business entity.

Tip 1: Choose the Right Type of Entity

Make sure you choose the right type of business entity, which takes into account the needs of the investors from a tax reporting perspective, the types of investors who can provide capital for your business, whether more capital will be needed in the future, and what those investors will desire from an entity stand-point.

For instance, a C-corporation (C-corp) offers a structured and scalable framework that investors prefer. As a C-corp, you can issue multiple classes of stock, which gives you flexibility in creating equity incentives and accommodating different types of investors, such as venture capitalists and angel investors. Importantly, you may also want your business to be able to issue qualified small business stock (QSBS), which gives you a $10 million exemption from capital gains tax - a huge attraction for investors.

However, strategic planning and support from a trusted advisor can significantly mitigate these risks, safeguarding both your personal and business assets. Read on to find out how.

Understanding Business Liability

Every business owner must understand liability — your legal responsibility for any losses or damages that arise from your business operations.

Here are some common types of business liabilities that every owner should be aware of:

1. Product Liability: Covers injuries or damages caused by defective products your business manufactures, distributes, or sells. An example is the Boeing airplane door defects that are all over the news as this article is being published. 

2. Premises Liability: Includes injuries that occur on your business premises, i.e., someone trips and falls in your building and is injured.

In a previous blog article, I discussed the pros and cons of business loans and lines of credit. Here, I’ll cover another funding resource: credit cards.

However, the thought of using credit cards can be scary, especially since they often come with high interest rates and personal guarantees. So let’s explore what you need to know about using credit cards to fund your business, so you can do so wisely and with as much ease as possible. 

To begin, there are two kinds of credit cards entrepreneurs can use to fund their business: business cards and personal credit cards. Let’s start off with business cards.

Understanding Business Credit Cards

Business credit cards are specialized credit lines designed to meet the needs of businesses, ranging from small enterprises to large corporations. These cards offer several benefits over personal credit cards, including higher credit limits, rewards tailored to business expenses (such as travel, office supplies, or telecommunications), and valuable reporting features that can simplify accounting processes.

Being able to communicate well is crucial for business leaders. It’s not merely a “nice to have” skill but a central pillar of leadership essential for every entrepreneur.

At its core, leadership is about guiding others toward a shared vision. It involves making decisions that affect the lives and livelihoods of the people within the organization and, by extension, their customers. However, the brilliance of a vision is irrelevant if it cannot be communicated effectively. As an entrepreneur, you must be able to articulate ideas, values, and strategies in a way that resonates with employees, investors, customers, and other stakeholders.

Every interaction is an opportunity to lead. Whether it's a pitch to investors, a strategy meeting with the team, or a marketing message to potential customers, effective communication can mean the difference between buy-in and indifference. 

So how, exactly, do you learn the art of effective communication? Let’s break it down. 

Oftentimes, business growth is held back by a sort of “chicken-or-the-egg” scenario in which the business owner needs to hire or invest in a resource in order to grow, but they can’t afford the investment unless they have grown the business first. Financing can help you jump the chasm of being stuck in that loop.

Two popular financing options are obtaining a business line of credit from a bank and securing a loan. Each has its unique advantages and disadvantages, and choosing the right one depends on various factors, including the nature of your business, your financial health, and your long-term goals. It can get complicated, especially if you’re new to business ownership, but you don’t have to figure it out on your own. Instead, let’s navigate this together, shall we? In a future blog article, we’ll look at another type of business credit, using credit cards and how to do it right so you don’t ruin your credit score in the process - so stay tuned. But, first … 

Rather, the crux lies in identifying a successor who possesses the right qualifications plus the vision and capabilities to steer your company toward continued success. 

During this pivotal decision-making process, it's essential to sidestep these three common pitfalls that often hinder business owners when naming successors, as they can blur objectivity and impede the chosen candidate's ability to effectively assume control of the company.

Let’s dive in.

01 | Overlooking Diverse Leadership Styles

The temptation to seek a successor who mirrors your own thinking and actions can be strong. However, the essence of succession planning lies not in replicating oneself, but rather in identifying an individual poised to build upon your achievements and propel the business forward.