Ten Tips for New
Small Businesses
Even if you get
plenty of
Business coming your way -- and your customers pay you on time, which
isn''t always a sure thing -- you''ll want to be able to invest most of that
money back in the business for space, equipment, advertising, and insurance
needs. (You can hire independent contractors or temps in the meantime.) People
who start their small business on the cheap, often in a garage, den, or some
other scavenged space, and create their first goods or services with more sweat
than
cash, have the luxury of making their inevitable rookie mistakes on a
small scale.
When you go into
business for yourself, you are usually personally liable for all judgments and
debts that the business incurs. This includes business loans, taxes, money owed
to suppliers and landlords, and any judgments against the business as a result
of a lawsuit.
While you can protect yourself against
lawsuits by buying business liability insurance, this won''t help you with
business debts. (Projecting your cash flow is key and will make or break your
company: Even if your business is
getting plenty of work or selling its
products, if you''re not getting paid for 90-180 days, you''re not going to
survive unless you''ve planned for it.) With a cash flow spreadsheet in place,
as well as a profit-and-loss forecast, you can tinker with your business idea
and improve it before you start -- and continue to use them after you start.
Except for high-level executives, you
shouldn''t have employees sign an employment contract -- this can limit your
ability to alter the terms of employment as your business needs change and
subjects you to higher
legal standards. This is true even if you operate your
business as a corporation or LLC or if your business goes bankrupt -- you will
still be personally and legally on the hook to pay back payroll taxes. Here''s
what to include in your business plan to attract investors and keep your
business on track.
Each of the choices
you make in your business description will affect the amount of money you''ll
need to start or expand, and how much sales revenue you can expect.
Your marketing plan should describe your
target customer, decide how to reach customers, analyze competing businesses,
include a marketing budget, and discuss how you will differentiate your
business from the competition.
The purpose of listing your business goals is
to determine what you want your business to accomplish for you. For a
comprehensive guide to creating a plan summary (and the rest of your business
plan), get How to Write a Business Plan, by Mike McKeever (Nolo). Choosing a
Business Name FAQ NOLO.COM Related Articles in: Getting Started > Business
Opportunities Answers to commonly asked questions about choosing and
registering a successful business name. The
best name depends on a host of considerations -- some as obvious as the kind of
business you do, others as unique as your own tastes and style.
A good business name should: • be distinctive
• be memorable • be easily spelled and pronounced • suggest the products or
services you offer, and • distinguish you from your competitors. But as you hunt for the perfect name, keep
three main questions in mind: • Will your business name receive
trademark protection?
You should also
check with your county clerk''s office to see whether your proposed name is
already on the list of fictitious or assumed business names in your county.
Also, when picking a business name, you should
take care to choose a name that will be likely to receive trademark protection
and then take steps to protect your business name as a trademark. The legal name of
a business is the official name of the person or entity that owns a business.
If you are the only owner of your business, then its legal name is simply your
full name. If your business is a general
partnership, and you have a writtennt that gives a name to the partnership, then that name is
the legal name of the business. Otherwise, the legal name of a general
partnership consists of the last names of the owners. For
limited partnerships, LLCs, and corporations, the legal name of the business is
the name registered with the state filing office.
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