Start It Right! Blog

“The Do’s and Don’ts of Owning a Small Business”

 (Presented by Paige Arden Stanley – Attorney at Law)

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Bill Smith began the Roundtable discussion as usual by asking everyone to introduce themselves and their business. Paige then began her PowerPoint presentation on the “Do’s and Don’ts of Owning a Small Business.”

• Statistics: Georgia ranks #1 in the United States for entrepreneurship and #7 for the best state for businesses.

• Top DO’s for owning a small business:

1. Do limit your liability to your investment in your company by incorporating your business or organizing it as a limited liability company.
2. Do disclose everything to your attorney about your proposed business venture and past business experiences, both positive and negative.
3. Do discuss with your attorney the advantages and disadvantages of the various forms of business entities.
4. Do discuss with your attorney the “corporate formalities” to which you must adhere in order to preserve the limited liability afforded to you by virtue of having incorporated your business.
5. Do discuss with your attorney the need for a detailed written buy-sell agreement with your business partners.
6. Do discuss with your attorney the need for a written employee handbook and written employment agreements containing confidentiality and noncompetition obligations if necessary.
7. Do apply for a federal tax identification number for your business (necessary for almost all businesses).
8. Do talk to a tax professional and budget for taxes.
9. Do invest in technology.
10. Do prepare a detailed written business plan.
11. Do join your local chamber of commerce, local civic organizations, trade groups, and entrepreneurs’ organizations.
12. Do get to know your customers and suppliers.
13. Do network.

• Top DON’Ts for owning a small business:

1. Don’t make expensive office space and furnishings a high priority unless you are in an “image” business.
2. Don’t print your stationary, business cards, and promotional materials until you have had a trademark attorney conduct a search of existing state and federal trademarks and pending trademark applications.
3. Don’t ask or permit your employees to breach confidentiality or noncompetition agreements with their previous employers.
4. Don’t spend money required to be set aside for employee and other withholding taxes.
5. Don’t sign company contracts in your individual capacity. Rather, sign them on behalf of the company as an officer of the company.
6. Don’t put off buying insurance.
7. Don’t give up 50 percent of your company to investors in your first fundraising effort.
8. Don’t pass up opportunities for free publicity.
9. Don’t try to do everything yourself. Setting up a business is complicated, and a business law attorney can assist you in making and implementing the right decisions.

Paige went on to present, “5 Key Mistakes Business Owners Make and How to Avoid Them.”

1. Failing to Maintain or File Proper Organizational Documents.
2. Failing to Check an Employee’s Non-Compete Agreement.
3. Weak or Non-Existent Employment and/or Independent Contractor Agreements.
4. Litigation!
5. Failing To Get Legal Advice When Appropriate.

For a more detailed description of these “Key Mistakes,” please visit Paige’s website at www.stanleylawoffice.com. Sign up for Paige’s email list to receive more helpful articles and advice!

Next Roundtable Meeting: Wednesday, September 8th, 2010

Topic: TBA

Facilitator: Bill Smith

After introductions, Bill Smith began the session by defining the term “Branding.”

• According to the AMA (American Marketing Association), a brand is the “name, term, sign, symbol or design, or combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.”  
• In short, everything begins with branding: Advertising, Marketing and Public Relations.

Advertising, Branding, Marketing, Public Relations:

 What’s the difference?

• Advertising is a paid and controlled channel for communicating your message, while marketing is more systematic and active. Public Relations involves exposing your company through media sources with little control on the positive or negative outcome.
• What role does branding play? Branding is the foundation for these concepts. Your brand sets you apart, makes you memorable, and allows your customers to perceive the quality and nature of your business.
• Without your brand, all other concepts of communication are not as strong.
• Let your brand show that you are the expert in your field of business and confirm your credibility.
• Branding yourself can increase your notoriety and build a solid reputation in your industry.

Logos and Slogans

• A good logo generates successful brand recall in your potential customers.
• Logos may or may not represent the actual product you are selling. The key is to find a unique logo that will appeal to your target market. Play with the concepts of color, minimalism, humor, or the imaginative.
• While logos tend to be a permanent fixture for the representation of your company, slogans can change as new changes occur in your business.
• A catchy slogan needs to be memorable, and it needs to contain the key benefit or service that your business provides.
• Slogans can be very formal or humorous!

Questions to Ask Yourself

• What is the personality of my business?
• How am I going to attract my target market?
• What do they think of my brand?
• What would I like them to think?
• Who is my competition?
• Does the slogan match the logo?

Bill Smith provided a visual for differentiating the concepts of communicating your brand.

It was great to see some new faces at the Roundtable this month!

This month's Roundtable Hors d'oeuvres were provided by one of our Start It Right! participants, Chef Tonya Parkes-Burkett with A Quick Fix Personal Chef Service, LLC. The food was delicious! Thank you Tonya!

Next Roundtable Meeting: Wednesday, June 9, 2010

Topic: MONEY

Facilitator: Bill Smith

The November Roundtable had a great turnout and the conversations flowed! People were interested in talking about their day-to-day activities as it became evident that many people share a similar work-from-home schedule.

Growing Your Business

How do you do business? What’s a typical day like?

Participants went around the room and described a typical day, including pitfalls like getting sucked into email and getting sidetracked while working on projects.

You’re on your own as a small business owner and your activities typically fall into three main categories:

1. deadline management
2. time management
3. personnel management

(more…)