Thinking about starting a small business?
Your product or service has to be worthwhile for customers, but a framework of success is also based on other concerns. Even the most positive view of failure rates from the Small Business Administration was that about half of all small businesses fail the first year.Some of the factors new businesses do not think about associated with starting are:
Branding:
- Your business needs a branded look in correspondence, business cards, etc
- Persons dealing with the outside world should have titles
- Employees need to be cognizant that they represent the company with their conduct and their appearance
- Be sure to register your business name with the legal entity in your area that will ensure you are not using the name or persona of another existing business
Legalities to face:
If the business is run by partners, a clear understanding of responsibilities is needed from the beginning. A partnership agreement should be created using a legal firm and it should answer these and other important questions:
1. Who will do what?2. How will you ensure equal participation?
3. What constitutes a breech of the partnership?
4. What are the exit strategies for the business in the event of failure?
If the business is a partnership or a sole proprietorship - even more legalities:
1. Whether the business is a service or goods business, it needs to be viable.
2. Are the products and services saleable? Get the honest opinion of others.
3. Does the business have resources to stay afloat for an extended period of time?
4. Are you licensed and ready to pay taxes, fees and insurances required in your area?
5. Did you know you must pay double the Social Security for small business income?
Check with the Small Business Administration and your local city, state and county for details about operating a business in your area.
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