When starting a business, are LinkedIn and Facebook enough?

Image matters. Don't be lazy -- take the steps that make you look like you're running a company worth engaging.

Dear Bob ...

I'm out of work anyway (laid off), received an acceptable severance as a cushion, and am thinking of starting a small consulting business. I know you've answered questions about this before ... in particular, I remember your advice that if I'm not comfortable selling I shouldn't even consider it. I'm OK on that front (I think!).

Some of my friends are telling me that if I'm out on LinkedIn and Facebook that I don't need my own Web site. Others are telling me that if I don't have my own Web site, domain, business name (other than "Me and Associates"), and so forth then I'm going to look like a small-time nerd.

What do you think? Do I need to go through all that before I start to sell?

- Diving into the pool

 

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Dear Triple Lindy ...

 

Count me in the yes-you-do camp, assuming that by "consultant" you mean someone hired to provide advice and expertise, not "contracter by another name."

Specifically, you should:

• Incorporate as an S corporation: It might seem like a nit. I don't think it is. If you don't incorporate at all, you'll look like an amateur if any prospect asks. If you incorporate as an LLC or Ltd, it's practically a synonym for one-person-show. As an S corp, you'll be WhateverYourNameIs, Inc. That makes your size indeterminate -- a much better impression to give.
• Register your own domain: It isn't as if it costs a lot, and FirstnameLastname@WhateverYourNameIs.com appears professional, where FirstnameLastname1026@gmail.com appears like someone who's looking for something to tide them over until they get a real job again.
• Build a corporate Web site: Yes, you should be on LinkedIn. Maybe you should be on Facebook (you should if you think your prospects spend time there). That's no substitute. My opinion is that consulting businesses no longer need printed brochures. They do need a Web presence, even if it's nothing more than a brochureware site, to explain what they do and why prospects should engage their services instead of their competitors.
• Figure out your business: In particular, before you build that Web site, you should have a good answer to two questions: what is it that you do, and why a prospect should engage your services instead of one of your competitors. Your prospects will ask both questions. You should have good answers -- short ones. Of course.

You're going to have a lot of competition (me, for example) combined with a very tight spending market. Why handicap yourself by making yourself look like a fringe player when for a small amount of money and a modest investment of time you can make yourself look like you're serious about your business?

If you still aren't convinced, here's one more dimension to the issue: When you're in the advice business, you're asking clients to trust your judgment and expertise. From now until you stop being in the advice business, make sure everything you do reinforces the right message -- that your business judgment is trustworthy and your expertise is extensive. Being JustAnotherYahoo4259@yahoo.com conveys quite another message, don't you think?

- Bob