Small Business

Some aspects to consider are licenses required, zoning laws and other regulations that vary from state to state and business to business. Depending on the type of business you are running, you may also need establishment licenses, liquor licenses, delivery and/or transport licenses. Your local SBA office or Chamber of Commerce will provide you with general information. The first decision is to decide about your form of organization. You can choose to be a sole proprietorship, corporation, s corporation or partnership. Speak to your local CPA for advice specific to your business and location.

There is a minimum wage set by federal law for most jobs. The actual wage paid is entirely between you and the prospective employee. Wage compensation is usually calculated using position importance and skill as the main criteria. You may consult with your local CPA or trade associations to learn more about the current practices in your business field.

You must withhold federal and state income taxes and contribute to unemployment and workers compensation funds. You must also match their social security contributions. You may want to also check into "key employees" life and disability insurance programs. Laws vary from state to state. Speak to your local CPA about the financial responsibilities in your jurisdiction and industry.

The basic three questions a lender will ask you is: How much do you want to borrow?; How will you use the loan?; and How will you repay the loan?. You must be prepared to answer these questions. When you apply for the loan, you must be able to provide prior, current and projected financial statements and a business plan which includes the name of the business, location, production facilities, business goals and legal structure. A description of your business experiences and management capabilities, as well as the expertise of your key personnel will also be needed.

The importance of keeping adequate, legible, complete records cannot be stressed enough. Without records you cannot see how well your business is going and where it is going. All business transactions should be documented with checks or credit cards. Undocumented cash transactions should be avoided if possible. At a minimum, records are needed to substantiate your tax returns under federal and state laws, including income tax and social security and sales tax laws. It also is necessary to substantiate your request for credit from venders or loans from lending institutions. It also is necessary to substantiate your representations and claims about the business should yo wish to sell the business. Speak to your local CPA to set you up on a good bookkeeping system.

There are four basics of marketing. (the four P's) Product is the item or service you sell. Price is the amount you charge for your product or service. Promote are the ways you inform your market as to who, what and where you are. Provide are the channels you use to take the product to the customer. A major part of marketing invovles researching your customers to find out their need, and then fill it. Also, discover what your cusomers want and what they will be willing to pay for it.

There are four basics of marketing. (the four P's) Product is the item or service you sell. Price is the amount you charge for your product or service. Promote are the ways you inform your market as to who, what and where you are. Provide are the channels you use to take the product to the customer. A major part of marketing involves researching your customers to find out their need, and then fill it. Also, discover what your customers want and what they will be willing to pay for it.

The price of goods or services is based on three basic production costs: direct materials, labor and overhead. After you determine this unit cost, you will need to determine a unit price to cover your production costs and achieve your desired profit margin. This amount should be acceptable in the marketplace. It must be profitable and competitive. The basic economic concept of supply and demand should also be considered in the pricing equation. Speak to your local CPA about your pricing strategies.

A college professor was overheard telling his class, "There are three basic principles for a successful business: location, location, location". You can have the best business in the world, but if it is located in a desert, your business will probably fail. Time and effort devoted to selecting your business location will mean the difference between success and failure. The kind of business you are in, the potential market, the availability of employees and the number of competitive businesses in your neighborhood should all be determining factors in your choice of location.