We hope you find this arcthve useful. A subscription to The Small Business Advisor Newsletter is free. Subscribe now - it's easy!

The Small Business Advisor Newsletter for MAY, 2000

CONTENTS

Notes, tips, etc
Requirements for Starting a Business
Multiply Your Sales!

NOTES/TIPS/etc

THINKING OF A WEB-STORE? Note this: Recent studies show what is important to online shoppers and what prompts them to return:

Guaranteed transaction security, 85%;
Price discounts, 79%;
Free shipping, 76%;
Ease of finding items, 69%;
Clearly stated delivery and shipping costs policies, 67%.

THINK YOU'RE ALONE? According to the SBA there are just under 6-million small businesses with 1-4 employees. This means plenty of opportunity for business-to-business sales.

BEST TELEPHONE RATES? Compare various providers at http://www.simplexity.com. Very handy.

SELLING EXCESS MERCHANDISE, MATERIAL? EBay, the largest auction website on the Internet (http://www.ebay.com) has added a new "Business Exchange" area on their site - especially for small businesses to buy and sell business related items. Very neat.

MARKETING TIP. Reach qualified Latin American importers with a directory from BellSouth. Contact them at http://www.guiaconnect.com.

LOOKING FOR WAYS TO FINANCE YOUR BUSINESS? Read about SBA Loan Programs For Small Businesses: http://www.sba.gov/financing/7aloan.html

MERCHANT ACCOUNT INFO. Looking for a merchant account? The best source of merchant account info I have found is workz.com. Find them at http://www.merchantworkz.com/.

The Internet Marketing Center, http://www.marketingtips.com/t.cgi/7115 Marketing tips, strategies, and secrets for internet marketing, online advertising and website promotion that will skyrocket your small, medium or home based business profits through the roof.

++++++++++++++++++++++++

REQUIREMENTS FOR STARTING YOUR BUSINESS

It may be inconceivable to you that your home-based consulting service would have to comply with any of the numerous local, state and federal regulations, but in all likelihood it will. Avoid the temptation to ignore regulatory details. Doing so may avert some red tape in the short term, but could be an obstacle as your business grows. Taking the time to research the applicable regulations is as important as knowing your market.

Below is a listing of the most common requirements that affect small businesses, but it is by no means exhaustive. Bear in mind that regulations vary by industry. If you're in the food service business, for example, you will have to deal with the health department.. Carefully investigate the regulations that affect your industry. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business.

Business Licenses
There are many types of licenses. You need one to operate legally almost everywhere. If the business is located within an incorporated city limits, a license must be obtained from the city; if outside the city limits, then from the county. For more information contact the county or city office in your area.

Certificate of Occupancy
If you are planning on occupying a new or used building for a new business, you may have to apply for a Certificate of Occupancy from a city or county zoning department. For more information contact the county or city office in your area.

Business Organization
There are many forms of legal structure you may choose for your business. The most common structures are Sole Proprietorships, General and Limited Partnerships, C and S Corporations and Limited Liability Companies. Each legal structure offers organizational options which are appropriate for different personal situations and which affect tax and liability issues. We suggest you research each legal structure thoroughly and consult a tax accountant and/or attorney prior to making your decision.

Fictitious Business Name
Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act. [Check with your local government offices] This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name.

Protecting Your Idea
If applicable to your business, you may want to apply for trademarks, patents and your copyrights. Visit http://www.uspto.gov. Trademarks
Trademarks are names or symbols used in any commerce that is subject to regulation by state government or the U.S. Congress. Trademarks and service marks may be registered in a state for a term of ten years. For more information about Applications for Registration of Trademark or Service Mark contact: http://www.sba.gov/world/states.html

Copyrights
Copyrights protect the thoughts and ideas of authors, composers and artists. A copyright prevents illegal copying of written matter, works of art or computer programs. In order to ensure copyright protection, the copyright owner should always include notices on all copies of the work.

Business Insurance
Like home insurance, business insurance protects the contents of your business against fire, theft and other losses. Many small businesses must protect themselves from lawsuits and other situations for which they might be deemed liable. All businesses should research the advisability of appropriate liability insurance. Contact your insurance agent or broker.

Sales Tax Number
In your state there is a percent sales and use tax which applies to the retail purchase, retail site, rental, storage, use or consumption of tangible personal property and certain services. In other words, sales tax must be collected on just about every tangible item sold.

A sales tax number is required for each business before opening. The number, plus instructions for collection, reporting and remitting the money to the state on a monthly basis, can be obtained from: http://www.sba.gov/world/states.html

OTHER CONSIDERATIONS

All businesses with employees are required to comply with state and federal regulations regarding the protection of employees. For information on state labor laws, work force availability, prevailing wages, unemployment insurance, unionization, benefits packages and employment services visit: http://www.sba.gov/world/states.html

Unemployment Insurance Tax
Businesses are required by the state to pay unemployment insurance tax if the company has one or more employees for 20 weeks in a calendar year, or it has paid gross wages of $1,500 or more in a calendar year. The taxes are payable at a rate of 2.7 percent on the first $8,500 in annual wages of an employee. http://www.sba.gov/world/states.html Unemployment insurance must be reported and returns made to the state.

Immigration Act
The Federal Immigration Reform and Control Act of 1986 requires all employers to verify the employment eligibility of new employees. The Immigration and Naturalization Service makes available a Handbook for Employers, which provides step-by-step instructions on how to complete the "Employer Eligibility Verification" Form I-9, which is required by law when hiring a new employee. To obtain a copy of the handbook and the form and for additional information visit: http://www.ins.usjog.fov/graphics/formsfee/form/I-9.htm

Health and Safety
The Federal Occupational Safety and Health Administration (OSHA) outlines specific health and safety standards employers must provide for the protection of employees. Many states have similar standards. For information visit: http://www.osha-slc.gov/SmallBusiness/Safety.html

Workers' Compensation
If a business employs three or more people, workers' compensation insurance must be carried to provide protection to those injured in on-the-job accidents. The State Board of Workers' Compensation aids people who need claim assistance.

Minimum Wage
Virtually all business entities are subject to the federal minimum wage, overtime and Child labor laws. Information on these laws and other federal laws, may be obtained from U.S. Department of Labor Wage and Hour Division. Visit them at: www.dol.gov/dol/asp/public/programs/handbook/minwage.htm

[3/04: updated info from DOL: Formerly called the "Small Business Handbook," the new guide is called the "Employment Law Guide." Please change your link. The Employment Law Guide is available in English and/or Spanish on the Web at http://www.dol.gov/asp/programs/guide.htm in text or pdf format. It is also available in hardcopy in English or Spanish by calling 1-866-4-USA-DOL]

++++++++++++++++++++++++

10 Killer Ways To Multiply Your Sales!
by Larry Dotson (bizport@aol.com)

1. When you make your first sale, follow-up with the customer. You could follow-up with a "thank you" email and include an advertisement for other products you sell. You could follow-up every few months.

2. You could upsell to your customers. When they're at your order page, tell them about a few extra related products you have for sale. They could just add it to their original order.

3. Tell your customers if they refer four customers to your web site, they will receive a full rebate of their purchase price. This will turn one sale into three sales.

4. When you sell a product, give your customers the option of joining an affiliate program so they can make commissions selling your product. This will multiply the sale you just made.

5. Sell the reprint/reproduction rights to your products. You could include an ad on or with the product for other products you sell. You could make sales for the reproduction rights and sales on the back end product.

6. You could cross promote your product with other businesses' products in a package deal. You can include an ad or flyer for other products you sell and have other businesses selling for you.

7. When you ship out or deliver your product, include a coupon for other related products you sell in the package. This will attract them to buy more products from you.

8. Send your customers a catalog of add-on products for the original product they purchased. This could be upgrades, special services, attachments, etc. If they enjoy your product they will buy the extra add-ons.

9. Sell gift certificates for your products. You'll make sales from the purchase of the gift certificate, when the recipient cashes it in. They could also buy other items from your web site.

10. Send your customers free products with their product package. The freebies should have your ad printed on them. It could be bumper stickers, ball caps, t-shirts etc. This will allow other people to see your ad and order.

Return to top of page - Back to Home Page - Back to Archive Index