Here are some of the questions I have received from my existing clients. Feel free to email me with additional items of concern, and I will do my best to answer.
Unfortunately, there are many regulations that affect small businesses. Your attorney should be able to advise you on what you need to do. You can also contact your state, county, and city governments to ask them what steps you need to take. The internet is also a valuable tool for researching regulatory issues.
An attorney should be contacted as soon as you've decided to launch your business. They can advise you on what entity you should use. They can review your insurance program. They can also review any contracts involved with the business. I would advise being prepared and organized before contacting your attorney. Their time is very valuable, and you should go in with a specific list of questions and concerns for them.
Seek advice from your insurance agent on the appropriate insurance coverages. You don't want to risk a lot to save a little. Your insurance program should emphasize liability coverages to protect yourself and your business from being sued. If you need to reduce costs, look towards increasing your deductibles and obtaining any discounts available. Insurance can seem to be an expensive item, especially if nothing goes wrong. However, when things do go wrong, it will seem like a great investment, and can prevent you and your business from going bankrupt. You should also reviw your life insurance, disability insurance, and health insurance to see that there is adequate protection in case you are injured or disabled.
Unfortunately, some people tend to be very organized, and other people tend to be disorganized. In order to run your business effectively, you need to have a place for everything and everything in its place. This is even more difficult as a small businessowner. Since you are now the sales department, the maintenance department, the inventory department, the accounts receivable department, the accounts payable department, the marketing department, and the complaint department. If this is a challenging area for you, I would recommend seeking outside advice on how to better organize your work area. I would also recommend utilizing your computer. Much can be accomplished with programs like Outlook and Excel, so that you can keep track of your expenses and to-do items without relying on piles of papers and gobs of sticky notes.
Once you have determined your start up costs, you have two options. One is to pull out a sufficient amount from your personal savings to capitalize the business. This would be the best option as long as your remaining savings still gives you a sufficient rainy day fund. Your other option is to borrow the money needed to capitalize the business. Unfortunately, business loans for start ups are hard to come by. If you manage to find a lender that will loan you the money it will probably be at a high interest rate, or, they will look for significant collateral. One option is a home equity loan. This has certain advantages in that it should be tax deductible and the rates are usually attractive. Some busienss owners will run up credit cards or take out other personal loans, which can be problematic. When evaluating any financing options, you want to look at the interest rate that is being charged as well as the tax deductibility of the interest. For example, credit card interest is not deductible, while an equity loan generally is.
The government tries to protect consumers by regulating businesses. Unfortunately, the effect on small businesses can be overwhelming. Large companies can afford to employ their own bureaucrats to deal with the bureaucracy. The government is trying to encourange small business growth, but the regulatory streamlining has been very slow in coming.
There are several options including
Your choice will depend on the size of your business, the level of liability protection sought, and the tax consequences. Consult your attorney on the best option.
Start by detailing who your target client is. Next you can list your personal contacts including friends and family. You could start by sellling to your personal contacts. You want to keep building your list of prospects by asking for referrals from every satisfied customer. If your personal contacts are not sufficient there are companies that will sell lead lists to you.
Short answer: No. Long answer: Involve your family in helping you with the business. Try to manage expectations because your time will have to spent building the business. The key is to stay organized so you can balance all of your responsibilities.
Several software programs can be utilized including Outlook, Excel, and Access. Keep track of all your prospect or customer's information including addresses, phone numbers, and any key information that will help sell your product or service.