Starting a small business is both exciting and challenging, and the rewards can be enormous. However there are some things to consider that will help you decide where you want to take it.
- Do you like to make your own decisions..?
- Are you prepared to learn from others..?
Your attitude and skills play a very important part in starting a small business. Be true to yourself and acknowledge your strengths and weaknesses, but most of all believe you have what it takes to succeed.
Take a basic lesson in cash flow management
What legal structures will you use?
You now have a choice to make about how to set up the structure and how to apply for a startup business loan:
Commercial Loans - get started here..!
Sole Trader -
You ultimately do all of the work yourself but the best thing is that you keep all of the profit, therefore there's no missing money. Record keeping should be simple and straightforward. However, you're solely responsible for your debts which can equate to additional risk to you.
Partnership -
Two or more people share the net return, costs, risks and responsibilities of being in partnership.
Company -
In my opinion, this is the best structure in which to operate under. While two or more people share the net return, risks, costs and responsibilities the difference is that liability is limited to the amount of capital initially invested. This means greater legal protection for you..!
Virtual Assistant Business -
Take it to the next level and get the information you need to start your own virtual assistant empire. Virtual Assistant Business opportunities - CLICK HERE!
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Legal issues to be considered
when starting a small business?
Business Name Registration: Business names are controlled by the states, so if you use a business name it must be registered in each of the states and territories in which you propose to trade.
Company and Trust formation: A lawyer can form a company for you or you can purchase an "off-the-shelf company" through an accountant, lawyer or from a company that markets them. If you choose a Trust structure you will need a 'Trust Deed'. These are available in similar ways to companies, and your accountant will be able to organise one for you.
Contracts: You should seek legal advice before signing any contract, lease, purchase agreemnt or any other legal document. If you are entering into a contract, make sure you have a written contract prepared by a lawyer.
Franchise Agreement: You should seek legal advice before entering into a franchise agreement and ensure you understand all the provisions, rights and responsibilities before signing the agreement.
Partnership Agreement: If you choose a partnership structure then you must have a partnership agreement. A partnership can be like a marriage and while everything is rosy now, it may end in divorce. A formal agreement setting out the partners respective rights, obligations and duties, and what happens on termination must be prepared by a lawyer.
Patent Registration: If you have a design or a new product that needs protection from other people copying it, then seek the assistance of a patent attorney. Do this before you make your design public as your rights for a patent diminish once this happens.
Property Lease: Your property lease is an important legal document and you need to understand the ramifications of clauses in your lease. Will your proposed activity be permitted under the terms of the lease and government regulations?
Is the term of the lease sufficient and what are the rights of renewal? What is the commencement rate and what are the provisions for increases? Who is liable for insurance? Who is liable for outgoings? What are you allowed or not allowed to do? Seek advice from a lawyer to ensure you understand the provisions and how they may affect you.
There's a lot to consider when starting a small business, isn't there?
Don't worry though because I created this site to share my knowledge and strategies with you on how to start a small business and succeed. If you take a look around this site then I'll teach you a whole lot more.
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