Successful Blog

Make the Right Call When it comes to Legal Advice

by

Having the right attorney to handle your small business’s legal affairs can literally mean the difference between success and failure. But don’t make the mistake of waiting until you’re in legal hot water before finding a lawyer to represent you.

Paying an attorney to oversee and review all legal matters pertinent to your business operations can help to protect your company’s interests and keep you out of trouble.

The fees you’ll pay for this kind of ongoing legal service are relatively modest when compared to the costs you’ll incur if you put off getting legal representation until you’re already in trouble.

What to Look for

What should you look for when you’re shopping for legal representation?

Like medicine, the legal profession has become increasingly specialized over the past couple of decades. Fortunately, there are some law practices and individual attorneys that specialize in business or corporate law.

If your business operates in a small town or rural area with a relatively limited selection of lawyers to choose from, you should shop for an attorney with knowhow in areas of the law most relevant to business.

In an article for Entrepreneur.com, Cliff Ennico, author of “Small Business Survival Guide,” suggests you look for lawyers or law groups that can provide guidance in the following key areas:

  • Business Organization –  Of particular value if you’re just starting up your business, an attorney familiar with the different types of business organizations and the pros and cons of each can help you decide whether it’s best to set up your company as a partnership, S- or C-Corporation, or limited liability company. Once you’ve decided what best fits your needs, the attorney can prepare the necessary papers needed to make your business legal.
  • Contract Law – Having a lawyer prepare or check over contracts that cover transactions between you and your customers and suppliers can ensure that your interests are protected and that the contract language is legally sound.
  • Intellectual Property – If your company’s goods and/or services are essentially the product of in-house creativity, you’ll want an attorney who can register those products for copyright or trademark protection. Failing that, look for an attorney who has an ongoing relationship with a lawyer specializing in the protection of “intellectual property.”
  • Real Estate: – Even though your business itself has nothing to do with real estate, you will find it necessary to negotiate leases for office or retail space, production plants, and/or warehouses. An attorney can help to get you the best possible deal and ensure that the lease agreements covering such transactions have no legal loopholes that could prove problematic in the future.
  • Licenses and Taxes – No matter where your business is located, local and state licenses probably will be needed to legally operate your company. Your attorney should be familiar with regulations so that all necessary licenses and permits are in order before you open for business. While your in-house bookkeeper or outside accountant will probably prepare your tax returns, your attorney can help get your business registered for state and federal tax identification numbers.

Legal services aren’t cheap.

Generally speaking, large law firms bill at higher hourly rates than smaller law offices. However, larger law firms are more apt to have attorneys in virtually all specialties needed to address your company’s needs.

Seek Out Recommendations

If you want the best legal talent you can afford, talk to other business owners in your community to get their recommendations of attorneys or law firms that have served them well in the past.

If you’re new in the community, you might want to use the services of a lawyer referral service that can steer you to a select number of attorneys that specialize in the types of legal services you require.

Shopping for a lawyer based on ads in the Yellow Pages or TV commercials is definitely not recommended.

Retainer Agreement

When you find the attorney or law firm that seems right for your business, you can draw up a retainer agreement that outlines the types of services you will require, the rate at which such services will be billed, payment and billing terms, and guidelines that govern the renewal or termination of the agreement.

Lastly, you will probably be asked to pay a retainer fee that will be deposited into the trust account of the law firm and against which future bills for services rendered can be charged.

Photo credit: retailtrust.org.uk

About the Author: Jay Fremont is a freelance author who writes extensively about a wide array of business and financial topics, including where to look for the best personal financial advice.

Make It Your Business to Secure the Right Title Loan

by

As many small business owners can report, today’s Internet world is a great way to do business.

In many cases, all companies need is computers and an Internet connection in order to do business with the vast number of their clients. Sounds simple, right?

In other instances, however, physically coming into contact with your customers is a requirement, especially in those cases where the customer can’t come to you and doing business over the phone or via an online connection is not feasible and/or the best option.

If you’re a business owner starting out or one that needs to improve your company’s vehicle fleet operations, obtaining one or more vehicles is not as easy as picking a few cars or trucks off of a showroom and driving off with them. For many new business owners, money can be a precious commodity.

For those business owners that need title loans to secure their company vehicles, knowing where to shop and who to buy from is as important as some of the other major decisions you will make over time.

Minimal or Bad Credit Can Be Passed Over

In many cases, individuals starting out small businesses can be stretched for cash.

They oftentimes will have to take out a loan in order to get the new business up and running in the first place. With little or no money to spare, securing one or more company vehicles can be a challenging proposition to say the least.

When those challenges occur, business owners should consider options such as TitleMax and other such providers to secure the necessary title loans.

With companies such as these, business owners can find themselves with a title loan minus many hassles, even in cases where the individual has little, no, or even bad credit to worry about, that is as long as a clear car title is present.

Before you run out and assume that all title loans providers are the same, make sure you do some research.

Among the factors to look at:

  • How long the title loan provider has been in business;
  • Their level of customer service. This can oftentimes be checked by asking friends, coworkers or family members that have used a title service and/or turning to online reviews of such providers;
  • Whether or not they have had any legal issues over time with state regulators and/or the Better Business Bureau (BBB). If there are some red flags, be sure to give it some thought as to whether you can fully trust what they are telling you;
  • The state you and the title provider are in. Not all title loan rules are the same from state to state, so check this information out first.

With all you have to do as a current or new small business owner, securing company vehicles should never be overlooked. Some clients will require that you come to them to deliver products and/or services, and asking employees to use their own vehicles is not always an option.

When you secure the right title loan, you can drive your business to new heights.

Photo credit: dbav.net

About the Author: Dave Thomas covers a variety of business topics for different websites, including owning a small business, marketing, and social media.

 

Is Your Business Functioning on All Levels?

by

It can be easy to keep track of your small business when you are first starting out.

You know what everyone is doing; in fact, you are often the person doing most of the work. However, as your business grows and expands into new areas and new departments, it can be difficult to ensure that everything is working smoothly until it isn’t.

To avoid crisis, you need to know if your business is functioning well in all areas. This is part of the role of business administration.

Organization

One area where you must review is on leadership.

Do you have a leader for every department or is one person trying to handle multiple areas? Is the right person in the right position of leadership?

Whether you believe that leaders are born or made, you must make sure you have a true leader in the right position to achieve the best results from your staff. That may mean hiring the right person or training someone to become the right person for the job.

You must also make sure you have your small business divided into the correct categories or departments to operate in the most efficient way possible.

Tasks need to be delegated to the area where it makes the most sense. This may differ from what has been done in the past, but results in better operations.

Communication

Do you have adequate communication channels set in place for your business?

A successful organization is one that receives input from all areas of the company. Furthermore, the leaders of the organization provide information that is accurate, relevant, and timely to the staff. No one feels left out or left “in the dark” as to the direction of the organization.

To have an effective administration means in part that you offer the opportunity for everyone to be heard.

This may include providing anonymous surveys for input. An organization must have weekly or monthly department and company-wide meetings to keep everyone updated on the different aspects of the business.

Review

A business must also have an effective review system in place.

This not only ensures that things are working well, but it gives you the opportunity to see if there are ways you can do it better. It helps keep your company organized while you make sure everything is progressing along based on the business plan. If you find deviations, you must decide if they need addressed or if your plan needs altered.

As your business grows, you will find it harder to keep your hands on the pulse of the organization. However, it is important to maintain the proper oversight of every aspect of your company to ensure future success.

By focusing on having the proper administration in place, you can achieve your goals and keep your company running smoothly on all levels.

Photo credit: smallbusiness.chron.com

About the Author: Joyce Morse is an author who writes on a variety of topics, including SEO and business administration.

Why Your Business Still Needs to Attend Conferences

by

Everything’s online nowadays, meaning people can easily connect via social media and phone conferences.

It’s easy to think that real-life conferences are a thing of the past, but actually, it’s the exact opposite. Conferences are important for small businesses to attend more than ever now. Basically, there’s no replacement for meeting people in-person.

With that in mind, here are some reasons you should not shy away from conference opportunities:

  • To network – While you can network online, there’s nothing like networking face-to-face. Face-to-face networking allows you to have a long conversation with someone, get to know someone on a more personal level and get to know those that are presenting. You may forget an email between a business associate, but you’ll never forget a face.
  • To break up your routine – Stepping outside the box allows you to think outside the box. By breaking the monotony of your day to day routine, you’re helping get your creative juices flowing. You may come up with a new business strategy, think of a way to better your product or connect with someone to market with. Attending a live conference is one of the best ways you can break up your routine.
  • To learn from others – Even if you consider yourself an expert in your field, you can always learn more. You may pick up something as big as a new strategy for your business plan or something as small as a new marketing technique. Either way, you’re guaranteed to learn something that will help your business by attending a face-to-face conference.
  • To meet your competitors – By attending a small business conference in your field, you’ll meet business owners just like yourself, i.e. your competitors. This is your chance to mingle with those that are more successful then you. You can ask questions and gain insight in order to improve your business. It’s also your chance to share your knowledge with businesses either just starting out or not as successful as yourself. You can present yourself as an expert in your field.
  • To relax – That’s right, attending a business conference can be a great way to relax while still working and improving your small business. It’s the best of both worlds. Come a day or two early or stay an extra day to explore the city the conference is in. Don’t feel obligated to attend every conference, either. If you wish to sleep in, sleep in. If you want to catch up with an old friend who lives in that town, go! Think of it as a mini-vacation where you get to have fun while still growing your business.

If you’re worried about travel expenses, most small businesses can write them off come tax season.

You should be able to write off food and hotel expenses, as well. Make sure to check discount travel sites for deals on airfare and consider splitting the cost of a hotel room if you know someone else that’s attending.

Small business conferences take place nationwide throughout the year.

Find one in your field, book your flight and go. Make the most of the experience by having fun, being social and proudly sharing what you’ve accomplished with others. More than likely, you’ll want to attend conferences on a yearly or semi-yearly basis.

Like was stated earlier, nothing replaces face-to-face interaction that a business conference provides.

Photo credit: affiliatetip.com

About the Author: Sarah Brooks is a freelance writer living in Glendale, AZ with her husband and two daughters. She writes on cheap Vegas hotels, travel and small businesses.

Budget for Small Business Health Insurance

by

With the introduction of Obamacare and your employees rushing to find out what insurance plans will work best for them, it is no wonder you are wondering how these changes are going to impact your business.

While the world of business insurance is changing, there are ways to keep up with these changes and still provide your employees with the health insurance and benefits they need. But before you do that, it helps to create a realistic budget that lets you offer insurance but still remain within the business assets you have available for these benefits.

Here are some tips and resources to help you get started.

Choosing to Offer Health Benefits

The first step when creating your budget should always be to decide if you will offer health insurance.

While in the past, this was a given, you might want to rethink your plans for 2014 and later years. Obamacare is going to change the necessity of businesses offering health insurance plans and the plans that are available.

However, keep in mind offering insurance is also considered one of the many benefits that entice employees and keep them happy with working for your company.

Some things to note are that health benefits are cost effective when combining with other benefits for your employees and they improve employee morale. This can help your business advance to the next level, improving your productivity level.

Creating Your Health Insurance Budget

Next is the budget factor.

No matter how small your business is, you still need to create a health insurance budget before moving further with the type of health insurance benefits that will be offered to your employees.

Start by looking at your current or past budget, if you have it. Look at different budget templates. You may need to make some tweaks to it, but it’s a great place to start.

Look at your overall business budget and how much you can set aside for health insurance, and start there. Once you have this number, you will be able to then look for insurance plans within this budget.

You may also want to compare the costs of individual versus family health insurance benefits.

Types of Health Insurance Plans

Now that you are working on your budget, think about the types of health insurance that is available to choose from. This includes group health insurance and defined contribution plans.

The group health insurance plans are the most common and are sponsored by your business. You will provide these benefits to your employees, who then get a choice of which they opt in for, changing their premiums, plans, coverage and more.

Instead of paying costs to a specific plan, you can also offer defined contribution health plan which is a more affordable option and is more of a discounted plan, rather than insurance plan.

Moving forward into 2014, you will find that the current health insurance plans you are offering have changed somewhat, but are still available.

If you are fine with your budget and these plans suit your employees, don’t stress about making big changes.

Photo credit: iwvoices.com

About the Author: Tina Samuels writes on social media, small business, marketing, and insurance.

How to Avoid Taking Out Large Loans to Fund Your Business

by

By Bill Fay

Family, friends and even his college professors told Aidan Augustin he had a business idea worth pursuing, even if meant dropping out of college.

Augustin and his roommate, Neal Ormsbe, designed a smartphone application that would allow anyone attending a business conference to get connected to and stay connected with the speakers and other attendees at the conference.

The two were juniors majoring in engineering at the University of Florida, but everyone said the idea couldn’t wait, so they dropped out of school, gave the business a name, Feathr, and opened shop.

There was just one little obstacle left to overcome.

“Money,” Augustin said, citing the one little obstacle nearly every small business owner must overcome.

Augustin and Ormsbe figured they needed $50,000 to get started. That’s not big money, unless you happen to be 20-year-old college dropouts with meager savings and no assets.

“We knew banks wouldn’t want anything to do with us,” Augustin said.

Getting Started

Fortunately, family, friends and their college professors got them started. Their parents agreed to send the same money they would have sent if the two had stayed in school. Friends agreed to work for what amounted to minimum-wage salaries. Professors put some of their own money in the pot, and a small business was born.

It didn’t take Augustin long to learn why more than half of start-up businesses fail the first year.

“We needed a lot more money than we thought we would,” Augustin said. “We didn’t understand the realities of what it takes to run a business. We underestimated costs on everything.”

That includes the relationship costs when you take loans from people you know, with no guarantee you can pay them back.

“The conversations with our parents and friends got a little awkward because we couldn’t really show clear signs of progress,” Augustin said. “Professional investors know the risks involved so it’s a little easier to deal with them when you’re starting out.”

Making Gains

Augustin let Ormsbe and a couple of part-time employees do the development work the next year and devoted more of his time to fundraising. He started with the crowdfunding site Indiegogo, where he found $21,000 worth of backing.

Then he won a lottery that provided free tickets to a conference in Silicon Valley for software startups called the “Largest Hack-A-Thon In History.” It was sponsored by Barracuda Networks, which offered winners $25,000 and a seemingly endless supply of business contacts.

Augustin’s group beat 130 teams from all over the country and claimed the top prize. That led to a front-page article in his hometown paper, the Orlando Sentinel, and suddenly Feathr had some status.

“That article created a buzz about our company,” Augustin said.

Feathr picked up a $150,000 award from TiE (The Indus Entrepreneurs) and contacts from the Barracuda Networks conference resulted in the first product sales. The 2014 budget is up to $450,000, most of which will go to pay salaries for the 12 full-time employees now working at Feathr’s offices in Gainesville, Fla.

“We don’t having the living expenses they have in Silicon Valley or New York City or places like that, which is a huge advantage for us,” Augustin said. “We can use our money more efficiently to hire more people and pay them actual salaries they can live on.”

The best news is that Feathr, now in its third year of operation, still hasn’t needed a bank loan to stay in business.

“We sort of hopped and skipped from one funding source to another, but we’ve made it so far,” Augustin said. “We’re working to keep it going that way.”

In addition to the crowdfunding, and loans from friends and families that helped jumpstart Augustin’s small business, another option to consider is tapping an annuity. Entrepreneurs who have annuities could use those investments to finance their budding enterprises instead of taking out loans.

The great thing about an annuity is that it’s your money. It’s already there, and you are not borrowing from a lender; however, since the annuity operates as retirement income, there are penalties to taking cash out before retirement.

When you take funds out of your annuity early you can expect the following:

  • A 10 percent penalty on the taxable portion of the annuity is forfeited if you are under the age of 59 ½.
  • The tax deferral benefits are in place to encourage long-term retirement savings, so the fee is similar to what you would pay on an early withdrawal from an IRA.
  • In most cases, if you cash out early, you will have to pay surrender charges. If your annuity carries a surrender fee, you should try to wait until the fee no longer applies. Surrender charges generally start at 7 percent and decrease incrementally, usually by 1 or 2 percentage points each year, until they reach zero.
  • Earnings on annuities are considered ordinary income, so you must pay taxes on any earnings when you cash out your annuity. This is in addition to the 10 percent early withdrawal penalty.
Author’s Bio: Bill Fay is a writer for Annuity.org, focused mainly on news stories about the spending habits of families and government. He spent 21 years in the newspaper business and eight more in television and radio, dealing with college and professional sports, then seven forgettable years writing speeches and marketing materials for a government agency.