6 Things to Help Keep a Small Business in Business |
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As I counsel various business owners that provide various services like the local hair salon owner, the catering company that handles your wedding to the boutique that dresses the wedding party, they share one fundamental commonality, a foundation built on basics. Some of the business basics needed for success includes: - Choosing the appropriate entity for your business and registering the same with the state.
- A Business plan: Many believe this plan is only needed when seeking funding for your business. WRONG! Although this is one of the many purposes for going through which may be an agonizing process, a business plan is just that, a plan, a compass for your business. The process of completing a business plan forces you to evaluate the market you are about to embark on and define its mission. More importantly, it shows you the money! How much money you need to make in order to just break even. Your business plan will be what you make it and if you invest in it from the beginning you will reap dividends throughout the life of your business. Most businesses owners do not lack a vision for their dream but do lack a plan, write the vision and make it plain!
- The right Contract: Most businesses provide a service that requires terms and conditions that must be acted upon. Hear ye, hear ye! PLEASE hearken to my voice in regards to verbal contracts, meaning the phone call I almost always cringe when I receive “well we did not have it in writing but we said, discussed, and agreed on x,y,z”. My fellow business owner, if it is NOT in writing it does not exist! Did you say, verbal contracts from a practical perspective do not exist? Well let me explain it this way, you are sitting next to me at the trial table and who am I going to call to the witness stand to testify that there was this verbal agreement? The person that does not want to fulfill their part of the deal and now has instant amnesia of any conversation they had with you. Bottom line, invest in having a contract drafted by an attorney. Please know, just like you go to a surgeon for surgery and don’t look on the internet for how to perform surgery on yourself, stop downloading those boilerplate contracts over the internet. Hmmmm if you can’t explain what the contract says maybe you should not sign it. Remember, if you could do what a lawyer could law schools would be out of business!
- A business license: Some businesses like those that sell various items require a license that must be renewed yearly. Please display the license once obtained. Another phone call that you want to avoid making to your attorney is that you are on the criminal docket for receiving a citation for failure to display or operating your business without a license. This overlooked detailed carries jail time in some jurisdictions!
- The right lease: Yes that 20 page plus monster can be negotiated, you do not just have to sign it. Again if you are considering leasing or buying space for your business please hire an attorney to review and or negotiate your lease. Signing a 5 year lease as many landlords are anxious to obtain in this market is a long time to commit to terms that you did not necessarily have to.
- The right collector - Knowing how to obtain a judgment when that client just does not pay: When your client or customer does not pay, there are options. Depending on your particular case, suing the nonpaying party may be an alternative. Don’t just rollover; ask your attorney how you can collect on your delinquent accounts.
Owning a business is overwhelming but being a proactive owner verse a reactive one is essentiall. Best wishes and happy working. Written by: Sondra M. Douglas, Esquire
The owner of The Law Offices of Sondra M. Douglas, LLC
www.smdlawoffices.com
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