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Target Audience
A target audience is a group of people identified as being likely customers of a business. Target audiences share similar demographic traits including, but not limited to: Age, Gender, Location, Education, Socioeconomic status
Identifying your target audience as a business can help craft marketing strategies and define your core customers. Instead of spending money and resources trying to cater to every consumer, defining a target audience allows for more intentional and personal outreach to those most likely to purchase your product or service.
Sole Proprietorship
A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and you, the owner. You are entitled to all profits and are responsible for all your business’s debts, losses and liabilities.
Corporation
A corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit. Corporations are allowed to enter into contracts, sue and be sued, own assets, remit federal and state taxes, and borrow money from financial institutions. A corporation can be created by a single shareholder or by multiple shareholders who come together to pursue a common goal. A corporate can be formed as a for-profit or a not-for-profit entity. The creation of a corporation involves a legal process called incorporation where legal documents containing the primary purpose of the business, name and location, and the number of shares and types of stock issued, are drafted. The process of incorporation gives the business entity a distinct feature that protects its owners from being personally liable in the event of a lawsuit or legal claim.
Limited Liability Company (LLC)
This is a type of business structure that lets you classify your business as a separate entity from you personally. This allows you to keep your personal assets separate from your business assets, and protect them from your business' debts and liabilities. You can open bank accounts, enter contracts, hire employees, and obtain business licenses and permits under your LLC. Most states require an annual filing and fee to keep your business in good standing.
Federal Tax ID (EIN)
A federal tax ID (officially known as an Employer Identification Number or EIN) is a unique number assigned to a business or organization by the IRS. A business uses its federal tax ID much like a person uses a Social Security number.
The IRS requires most business entities to use a federal tax ID (EIN)—corporations, partnerships, most LLCs, and some sole proprietorships. A federal tax ID offers other benefits, even when it isn't required by the IRS. For instance, it can help protect against identity theft, and it's often a prerequisite for opening a business bank account.
Unique Selling Proposition
A unique selling proposition, more commonly referred to as a USP, is the one thing that makes your business better than the competition. It’s a specific benefit that makes your business stand out when compared to other businesses in your market. At its core, a USP should quickly answer a potential customer’s most immediate question when they encounter your brand: “What makes you different from the competition?”
Your USP plays to your strengths and should be based on what makes your brand or product uniquely valuable to your customers. Being “unique” is rarely a strong USP in itself. You have to differentiate around some aspect your target audience cares about, otherwise your messaging won’t be nearly as effective.