Starting a Business

Developing Contracts for Web Developers

Business Insurance Now — Fri, 14 Aug 2009 17:16:59 GMT

As a web developer, you have a tough job, especially when it comes to maintaining project scope. Often times, your client does not have as much technical knowledge as you do, which is why they asked you to develop the website in the first place. When a customer gets confused on certain terms, they might be misled into believing that your web development contract included hosting, and maintenance, when in reality, it did not.

By creating crystal clear contracts, you will avoid many of these misconceptions and keep your project on focus and on time. Visit ContractEdge for more information on web development contracts. Or you can visit the TechInsurance Portal for tips on managing projects as an independent web developer.

Various Forms of Business and Selecting the Best One

Business Insurance Now — Mon, 23 Feb 2009 16:34:07 GMT

Starting a new business is an involved process that entails a number of strategic decisions. There are issues to consider such as: number of employees, location, hours of operation, products and services and more. This blog is going to be discussing one of the most foundational decisions – what form and type of organizational structure should your business employ?

Not sure what types of organizational structure there are? No problem, we’re here to help.

There are four main types of business structure:

· Sole Proprietorships – Owned in full by one person who is responsible for all decision making. They can work independently (such as an independent contractor) or choose to hire employees. The sole proprietor assumes total liability for any and all debts that are incurred.

· Partnerships – Just like it sounds, a partnership is when two or more people decide to own a business together. There are three different types of partnerships with different structural implications. These are: general partnership, limited partnership and limited liability partnership. In a partnership, owners are personally liable in the same manner that a sole proprietor is.

· Limited Liability Companies (LLC) – having the characteristics of both a corporation and partnership, an LLC provides limited liability to owners. This is a popular business model since it has the most flexibility and offers the best of both worlds – ownership without responsibility to stockholders and protection from full personal liability should something go wrong.

· Corporations – A legal entity separate from those that formed it, a corporation has legal rights and specific laws that apply to it. This entity is controlled by stock – which is essentially how much of the company you own. Unlike a sole proprietorship or a partnership, if a corporation fails the owners/stockholders only risk losing their initial investment.

When deciding on the right business form, seek legal advice. There are a number of free resources for small businesses – such as the Small Business Administration (www.sba.gov) – that provide counseling, advice and more. Do some research on your business industry and see what organizational structures have been working for your peers and competition.

Top 5 Reasons Why Your Medical Practice Should Use an Attorney When Choosing a Business Form

Business Insurance Now — Thu, 19 Feb 2009 23:15:38 GMT

If you’re just getting started setting up your medical practice, you may or may not be familiar with some of the more specific business aspects, such as choosing a business form. When establishing a business, there are a number of different forms to choose from. A new business can be a:

· Sole Proprietorship - solely owned by one person alone

· Partnership - shared ownership between two or three people

· Corporation - considered a separate legal entity with its own rights independent of ownership

· Limited Liability Company (LLC) - a company where shareholders are not responsible for paying more of the debt than their original investment

While the answer as to which form your medical practice should take may seem obvious, it is strongly recommended by business and insurance experts that you meet with an attorney before making any final arrangements regarding a business model.

The following is a list of the top five reasons why medical practices should consult an attorney before settling on a specific business form:

1. Liability – this is the most important reason why medical practices, or any new business, should consult with an attorney. The laws vary when it comes to personal liability for business debts based on which business model is in use. Attorneys can help you select a business model and will offer guidance as to which type of professional or general liability insurance will be needed.

2. Contracts – it’s important that all relationships, including employment agreements, are clearly spelled out to prevent any future lawsuits. A lawyer will ensure that all relationships, between partners, investors, shareholders and employees are clear and legally sound.

3. Taxes – there are different tax requirements and laws that apply to different business forms. An attorney will provide guidance as to which tax laws apply to your practice and the different tax breaks and requirements depending on the business model.

4. Control – who do you want to be in control of the medical practice? Do you want to share that control with anyone, and if so, with whom? Different business models exhibit different levels and types of control for investors.

5. Autonomy – similar to control, who will be making all the decisions and what will they be based on? An attorney will explain to you that different business forms have different decision making protocol that you may not have previously known about.

These are only some of the big reasons. Businesses should typically have an attorney familiar with their field readily available anyway. This is because the laws are ever-changing and an attorney will be able to provide you with sound legal advice.

How to Develop a Small Business Plan

Business Insurance Now — Wed, 12 Nov 2008 18:45:10 GMT

An essential part of starting a new business is preparing a small business plan. This effectively summarizes all of the operations and goals of your new organization in a clear, concise manner. Lenders, potential partners, and even the occasional client will want to see your business plan. It’s important to have a well-written business plan on file.

There are seven main parts to an effective business plan.

Executive Summary – a one to two page summary of your business plan.
Company Description – this is where you would put your mission statement and a basic description of what your company is and does.
Product or Service – describe any products and services you will provide and how you intend to do so.
Market Analysis – show why there is a need for your company in the relevant market.
Strategy and Implementation – how will you run your business? Explain how you will secure customers, resources and skilled labor. Then explain how you will implement your company’s goals.
Management Team – who will be in charge? Who will be held responsible? How will accountability and the assignment and completion of duties be managed?
Financial Plan – show and explain all anticipated income sources. How will you generate income and how will you manage expenses. Your financial plan is the most important part of your business plan. Will you be purchasing small business insurance? If yes, what type of business insurance will you need? What other expenses do you anticipate incurring?

For more information on how to develop an effective business plan, or for help starting your new business, visit the Small Business Association Website.

Tips on Hiring a Small Business Consultant

Business Insurance Now — Fri, 22 Aug 2008 15:57:16 GMT

Hiring outside help for you small business can be an extremely smart investment. A small business consultant can help with a variety of different problems within the operations of a business. Initially, it is wise to meet with a small business consultant during the start up phase of your business. This helps limit the possibility of over-looking areas where your business might not function well. However, a small business consultant can also be brought in well after the start-up phase in the case that the business is failing or simply becoming inactive.

Pick Out a Small Business Consultant

Choosing a small business consultant to help out your company requires some degree of research to be performed. Since there are a variety of areas small business consultants may specialize in, you need to choose one that fits your current circumstances. Carry out your own evaluation of the company, and determine the problem areas. Consult with your employees after you’ve conducted your own evaluation to determine any other problems within the system. Start researching potential small business consultants once you’ve completely determined what the setback might be. Credentials are a vital research tool for a small business consultant that will be successful in turning your business around. Interviewing the potential consultants is the next step in the process. Make sure that the small business consultant will not only prepare the plan, but help apply it as well.

After you’ve hired a small business consultant you’ll want to sign a contract with them that states the work that is to be accomplished, lists payment for that work, and includes a confidentiality clause. Finally, make sure to follow through with the entire project. The small business consultant isn’t going to do all the work on their own. They’ll need your help and motivation to get the job done.

How to Set Up Business Transaction Processing

Business Insurance Now — Fri, 22 Aug 2008 15:13:41 GMT

Having a business transaction processing service is important for both online and offline sales. It is important to utilize both in order to be able to fully process any type of payment method. Setting up business transaction processing online is the next step after creating a merchant account for your online store. Business transaction processing will essentially process and track the transactions that are made from your merchant account over the open Internet connection. This means that the entire transaction will be processed online. Thus, once the merchant Website obtains credit card information from the customer, that information is then transferred to the business transaction processing service. The service sends information to the issued bank of the customer which then approves or denies the sale, and sends it back to the processor.

Most business transaction processing services will offer some sort of terminal for manual access and entry, while also offering a service that gathers information on all of the transactions going through your merchant store. Many times your business transaction processing service will be determined by the merchant account provider that you’ve chosen.

To officially begin your online business transaction processing you’ll have to have a few things. First and foremost, you’ll need a fully functional Website with good ecommerce software installed. This means that the Website should have engaging content, an appealing design, and great overall ease of use. After you have your Website up and running, you’ll need to look into a merchant account that performs online services. Finally, choose a business transaction processing service that fits with your merchant account, and one that is known to be reliable. With the abundance of services now on the Web it can be difficult to tell which one will be reliable. Ask people in your similar industry what they use, and do all the research you can before choosing.

Offline Business Transaction Processing Set Up

The offline business transaction processing set up will be a little different than in the online world. This will obviously be business transaction processing for your physical store so that you can take credit card payment. In the offline world you’ll still need a merchant, and a point-of-sale terminal instead of a business transaction processing service. The point-of-sale terminal will transfer the information to the issuing bank of the customer and either approve or deny the sale. There are a variety of different offline business transaction processing services available, but many times the service will be dependent on your merchant provider.

Things to Look for in Business Transaction Processing

Before choosing your processing service you should perform a great deal of research to make sure you’ll be getting a safe and consistent transaction solution. When looking for a business transaction processing service, make sure to find one that fits your budget, and accepts many different payment methods. Also make sure that it tracks your transactions for you, and provides instant authorization on credit payments.

How to set up a business merchant account

Business Insurance Now — Mon, 18 Aug 2008 22:29:08 GMT

If you’d like to sell your product or service on your Website then you’re going to need a business merchant account. Essentially, a business merchant account will allow your customers to buy your product or service online with their credit card. Since more and more of business is done via the Internet, a fully functioning Website with a business merchant account is vital for success in our competitive society.

Set it Up Right

Initially your business merchant account will be set up through a service provider that hosts your account. The provider will oversee the transaction between you and your customer, and deposit funds into your account when a purchase is made. A wide range of choice is available when it comes to business merchant account providers across the Internet. Google and Yahoo! are some of the top providers; however, smaller providers are available across the net as well.

Investment

Setting up a business merchant account with larger providers can sometimes be a bit of an investment. Not only does your stock have to be added to their store, but they may charge a fee of a few hundred dollars. The benefit of going with larger providers such as Google or Yahoo! is the guarantee of security and usability. Customers are more likely to use a business merchant account that is known than one that isn’t.

Though the big providers do have their benefits, there are a great deal of smaller, cheaper, providers of business merchant accounts that are just as secure, and just as usable. Many times the business merchant account that you want will depend on the industry in which you’re in. Thus, conducting a fair amount of research should be a first step before diving into any commitment with a particular business merchant account provider.

Small Business Loans for Women and Minorities

Business Insurance Now — Tue, 12 Aug 2008 18:00:41 GMT

Getting a small business loan for your start-up is usually a very involved undertaking, and one which many times requires a lot of background information before simply going out and asking for a loan. Creating an extensive business plan that is geared toward the regulations of the institution in which you’ll be trying to receive a loan from is always a wise endeavor. However, finding a few different establishments that might be willing to grant you the small business loan is the vital first step.

There are a wide range of establishments that can be utilized when looking for special small business loans or grants for women and minorities. Certain government organizations focus on providing small business loans specifically for women and minorities. Therefore, if you are a woman or minority, you may be permitted to special small business loans for your start-up business.

The SBA and Small Business Loans

The SBA or Small Business Administration is a government organization that is dedicated to helping small businesses secure small business loans to meet any monetary needs. Their focus is on those small businesses that may not be eligible for small business loans through the regular funding outlets. Thus, they work with other federal agencies, non-profit organizations, private banks, and other corporations to see that small businesses are able to be financially stable. The SBA is the first place to seek out when looking for a loan as they will connect you with the organizations who grant specific loans for women and minorities.

Small Business Loans Specific to Minorities

There are a variety of organizations specifically dedicated to growth of minority based small businesses. The MBDA or Minority Business Development Agency is a federally built agency that will provide small business loans and aid with other development issues as well. They aim to makes sure that your business is a success. Other groups such as business resource centers and Native American business development centers are also available throughout the U.S. to provide assistance with development while securing a small business loan. The Small Business Administration is connected with these groups and other groups like them. Initially, you may find that it is easier to start working directly with the Small Business Administration. This will allow them to place you with an organization which will be dedicated to helping your business perform at top capacity.

Small Business Loans for Women

Many banks are well known for providing specific assistance to women and minorities alike. Bank of America is a leader in supplying small business loans to women and minorities. Wells Fargo is another well known bank that is a supporter of small business loans for women and minorities. Most banks have qualifications to meet before they’ll lend to you. These qualifications may include financial strength, and market share predications. Make sure that you check out the requirements of any organizations that you might attempt to secure a small business loan from.

Popular Small Business Franchises

Business Insurance Now — Tue, 05 Aug 2008 23:47:24 GMT

The small business franchise has become one of the most popular ways to almost guarantee success when opening a business. With endless possibilities, people are grabbing onto the small business franchise concept, and are making a good amount of money doing it. However, simply jumping on board any type of small business franchise is not a good idea.

Pick up a Franchise You are Passionate About

When looking for a franchise you first want to make sure that you have a good initial relationship with the company. Next, figure out whether or not the company offers direct training programs and the knowledge you need to have a successful franchise. Make sure the marketing programs that the franchise offers will succeed in getting the word out about the business. Be positive that they will assist with financing if it is needed and have a solid financial background. The franchise system needs to work with you in order to guarantee success. Finally, make sure that the litigation history is minimal for that particular franchise. You want to make sure that they company deals with variance well, and doesn’t litigate at every chance it gets.

The Top Small Business Franchises

The list of small business franchises is extensive, but here are some of the top ones that are turning a profit:

Subway – A classic staple of the sandwich world, Subway is spreading throughout the country and shows no signs of slowing.
RE/MAX – The always popular real estate company RE/MAX has made its way to the top of the list of small business franchises with franchises everywhere across the U.S.
McDonalds – With one on every street corner, McDonalds is kind of hard to miss as one of the most popular small business franchises.
Dunkin’ Donuts – with donuts, coffee, sandwiches, and more, you can’t really go wrong with this one.
7-Eleven – The convenience store that has it all has jumped up to the top of the list as well.

Small Business Help for your Start Up

Business Insurance Now — Wed, 14 May 2008 22:59:07 GMT

Let's face it; starting up a small business isn't the easiest feat to accomplish. Even more difficult is keeping your small business buoyant once you've invested an endless amount of time and money into your venture.

It's been estimated that over 50% of small businesses will fail within the first year.
Over 95% of small businesses will fail within the first 5 years.

These businesses usually fail from poor marketing strategy, or simply not receiving the necessary guidance before starting up. Therefore, it's necessary that you seek out some sort of small business help when starting your venture.

With the right help and research there will be less risk of you missing something vital to the success of your business. There is no shortage of small business help for those that need it. Government agencies such as the SBA are organized specifically to help small businesses succeed. The government isn't the only entity looking out for small business though. Take a peek at some other associations that are looking out for the little guy.

Where to Get Small Business Help?

There are literally hundreds of Websites dedicated to helping you start your small business. Organizations like the SBA, Small Business Administration, have great ideas, and sites like Business.gov will give the rules you need to comply with federal law.

Other great small business help Websites include: allbusiness.com, entrepreneur.com, and fool.com. These Websites will help with financial planning, marketing ideas, business planning, and utilization of various new technologies, management, and human resources. They also usually have a wide variety of useful tips.

Book stores and libraries are another great source of valuable reading material for small business help. In book stores such as Borders and Barnes and Nobles there is always a business section that has a wide array of books on small businesses and topics relating to small businesses. Top books for small business help can also be bought on Amazon.com. Some of these include: The Small Business Owner's Manual, The Big Book of Small Business, and The Small Business Bible. Libraries are another wonderful and free source of information on small business start ups. Check the reference section for a variety of books that may guide you in your venture.

The Small Business Help you Shouldn't Overlook

When starting up a small venture, many small business owners will overlook the basic necessity of insurance. Insurance is vital for the survival of your small business. It can protect your business from a variety of risks that might be able to otherwise put you under. Business Insurance Now not only provides great guidance for the type of insurance that your small business requires, but will provide all the small business help you need. Business Insurance Now is a great company that offers small business help to manage risk with a selection of different insurances. We will assess your particular situation and advise you on the best insurance for your small business.