Business rules 1-10 recaps

Business rules recap. Photoby: ed.ward

Over the past month we have went over all the basics for a solid foundation. If you followed the simple business rules 1-10 then you should be able to confidently finish the following sentences

1.    I should start my own business because…
2.    The reason I am starting a new business is…
3.    The small business that I am going to start is…
4.    My target market is …
5.    My biggest competitor is…
6.    I will supply by business needs and demands by…
7.    My business entity is….

Starting your own business can be a tough decision but once you have figured that small business is the best direction for you, knowing where to start can be confusing.  SBS business rules are designed to take away a lot of the stress of getting started. These simple rules will help you create a solid foundation for any new business.

What you learned

Business rules 1-3 had you examine your strengths and weakness in order to see if you were compatible with entrepreneurship and to define your business goal.

Business rules 4-6 had you examine your skills and experience to help you decide on a business idea that is congruent with your business goals.

Business rules 7-9 focused on research, so that you can define your target market, competitor and locate possible vendors for your business.

Business rule 10 defined different entities so that you can make an informed decision on which entity is best for you.

SBS Business Rules #1-10

1.    Know Thy Self

2.    Be Informed

3.    Define Your Purpose

4.    Value Your Skills & Experience

5.    Business Idea vs. Business Goals

6.    Lay the Right Foundation

7.    Define Your Target Market

8.    Identify & Analyze Your Competitors

9.    Find a Vendor

10.    Decide on a business entity

What did you think about business rules 1-10? Did you find them helpful?

Forming a Non Profit

Forming a non profit. By Tracy O

Another popular type of corporation is nonprofit organization. As a nonprofit you are in the business of providing a service or program for the sole purpose of development rather than for self or community. S and C corporations are for-profit organizations that sole purpose is to profit and redistribute those profits amongst the stakeholders in the business. A nonprofit may accrue earnings but it is for the sole purpose of self preservation and financial backing for future business plans. The stake holders does not financially profit from the success of the nonprofit.

 These are formed for civic, educational, charitable, and religious purposes and enjoy tax-exempt status and limited personal liability. (SBA)
 
The major advantage of non profit is the ability to file for tax-exemption from income tax and for some charitable organizations, property taxes. It does not make them exempt from employment taxes. Other advantages are the limited liability and starting a nonprofit may qualify you for grants and other financial assistance.

Starting a corporation can be a tedious task and making sure that your business structure is set up correctly and meet the many legal requirements can be overwhelming. Seeking the assistance of an attorney will not only help you make an inform decision but will also make sure that you are in compliance with the state and federal government.



Keep In Mind
This is the end of the three part discussion on different business structures. When trying to figure out which entity is best for you and your business, keep the following in mind:

•     Your Business goals
•     Business structure-How do you want your business structured?
•     Business legal vulnerabilities- Are you entering a high-risk business that may make your business vulnerable to lawsuits?
•     Tax effects- What are the tax implications and which entity offers the best tax benefits.
•     Profit/Loss projection and investment
•     Start Up cost
•     Ease of ending business

Deciding on the right entity can be at times tough and maybe speaking with a professional who has experience in business and tax law can you help you decide on the right business entity for you.

Make sure to visit your secretary of state website for state specific requirements for starting a business in your state.

www.sos.state. (enter your state abbr.).us


"Copyright © 2010, Dawn Austin, Recipe for Small Business, writer, SmallBiz Stew. All rights reserved. Permission granted to reprint this article on your website without alteration if you include this copyright statement and leave the hyperlinks live and in place."
 

What business entity best fit your business structure?