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Essential Things To Know for Small Business Owner


Small business is absolutely essential to a thriving and expanding economy. People tend to assume that large corporations are the backbone of an economy; they don’t understand the fact that all small businesses combined produce more assets and hire more employees than large corporations.

small business owner

If you are going to get into the entrepreneurial spirit and start your own business there are a lot of strategies you should implement to ensure that you remain successful. Finding the right insurance policy that helps you mitigate risk without breaking the bank is one of the most important features of any business plan.

There are many policies that the small business owner must consider:

Commercial General Liability

This is generally the first policy a business owner needs to look into as it offers the most general coverage. A commercial general liability policy protects your company from claims that deal with property damage and bodily injuries on the job.

This type of policy offers coverage for job site accidents and insures your company against claims when the property is broken or ruined. Without a policy like this, someone may slip in your store, sue you, and close down your business. A general liability policy is a good umbrella policy that pretty much covers everything, it’s a great safety net and a perfect coverage starting place.

Small Business Property Insurance

After you get general liability coverage property insurance can further insure the actual physical structure that your business is based out of along with all of the property on the premises. This type of protection is generally thought of to protect the building against things like fires or floods. Remember, this policy will not cover any property that leaves the location where the business is located.

Auto Insurance

An auto policy gives you coverage for all the vehicles that you use for your business. This policy is different from your personal one because it typically requires much higher coverage limits. These policies generally encompass general coverage along with covering medical payments, collision, uninsured motorist coverage, and towing.

If a member of your team is ever going to operate a work vehicle then you must make sure to get a commercial auto policy, it is an absolute necessity.

Employee Liability

This type of coverage, also known as workman’s comp, helps protect your business from claims that state an employee was hurt while working on the job. These policies can get pretty pricy, but that is only because employee payouts are generally very high when they are hurt at work.

Without this type of insurance, you and your business are personally on the hook for an employee’s medical bills, expenses, and any lawsuits pertaining to the injury.

Getting the proper coverage is an important step towards making sure you have a successful and profitable business. A good policy will protect your business from claims that could bankrupt the uninsured. When you get a policy make sure to read through it and understand the ins and out of what it actually covers.

Which Credit Card is Right for Small Businesses?

american express card

The credit card you choose to use for your business will be one of your most important tools during the vital development phases. Small businesses, in particular, often rely on the purchasing power of a credit card in the company’s early stages. Carefully consider what your business’s finances can handle and what it needs from a credit card before sending in any card applications. The most important aspects of business credit cards will help you know which is best for your situation.

Charge Card or Credit Card

A business credit card allows you to make purchases and then make minimum payments on a balance that carries over each billing cycle. A charge card, on the other hand, usually requires you to pay the entire outstanding balance every billing period. If your business is cash-poor or just starting out, a charge card may not be the best option. The addition of another monthly bill can cripple your company’s finances. A credit card, however, can provide much more flexibility to the payment schedule.

Building a Credit History

When your credit card company reports consistent purchases and payments to credit bureaus, your business develops a positive credit history. While you are researching business credit cards, check whether or not each company reports to agencies like Experion that generate your business’s credit score. An established credit score will lower interest rates, increase credit limits, and make loan capital easier to secure in the future.

Simplifying Financial Planning

A credit card that provides detailed bills, as opposed to simplistic summary statements, can make financial planning much easier for your business. Detailed billing statements will give you a clear picture of your business’s spending habits. An understanding of where the money is being spent will make it easier to formulate an effective budget and figure out where cuts can be made when necessary.

Can Your Business Afford It?

There are two primary costs associated with a credit card you should make sure your business can afford before committing to a card. Keep in mind the annual fees and interest rates of each card you are considering. Most business credit cards charge an annual fee for account services and enrollment in any rewards programs. Interest rates associated with business credit cards are on average much lower than consumer cards but should not be overlooked. Pick a credit card that suits your business’s budget.

The right credit card can take financial pressures off of your business and help establish a strong credit history. Consider all the important factors before making the final decision.

Why Small Business Owners Opposed to Online Sales Tax Bill?

The days of the tax-free frontier of the online shopping world have come to a close with the Senate’s recent passing of a bill that will subject online shoppers to state sales tax. The bill received support from Republicans and Democrats and was passed by a landslide. Under the former law, online sellers only had to charge sales tax if the store had a physical storefront such as Best Buy or Target. Sellers such as Amazon and eBay that only existed online were exempt from having to charge state sales tax.

The advantage that gives online stores is not fair, according to the Senate and other entities. “We ought to have a structure in place in the states that treat all retail the same,” claims Matthew Shay, president, and CEO of the National Retail Federation. “Small retailers are collecting sales tax on the first dollar of any sale they make and it’s only fair that other retailers who are selling to those same customers the same product have those same obligations.”
But while Shay claims small retailers need online companies to charge state sales tax, small online retailers are strongly opposed to the new bill. So which small businesses do we listen to?

Online platforms have changed the way small businesses get to do business. In fact, the internet has democratized the ability to own your own business. And American consumers have benefited from wider shopping choices and competing for online prices.

Why Small Retailers Should Be Allowed State Tax Exemption?

While larger online retailers that have to pay state tax because of their brick and mortar counterparts argue that small online retailers should pay state tax to even the playing field, the truth is small online retailers are operating at a higher cost than those giant companies. They are paying higher shipping and insurance rates that larger companies get bulk rate discounts on. Likewise, those online companies that also have brick and mortar store counterparts (brick and click retailers) do a lot more business because of their physical visibility. From 2008-2010, brick and click retailers increased their online sales from 33 to 38 percent, small online-only retailers saw their sales decline from 69 to 51 percent. Loading small online businesses with more online sales tax will further put larger corporations at an advantage over small online businesses.

Discrepancies in the Definition of “Small Business”

While the current tax bill exempts small online companies that sell under $500,000 of products, the Small Business Administration and foundations such as We R Here believes that the small business exemption (SBE) needs to be interpreted more widely to include larger online small businesses. According to the SBA, a “small” business is defined as a retailer with sales up to $30 million annually. Others argue that the small business should be defined by the number of employees rather than by sales numbers.

The online commerce platform has proven an empowering medium for small businesses that are better able to succeed without the hefty overhead of a brick and mortar establishment. More needs to be done to determine the fairest ways to handle state sales tax laws for small online businesses. We’ve already seen small and local businesses pushed out by large corporations in the physical world. It would be a shame if the same thing happened online.

Reliable Tricks To Increase Small Business Sales

We all know it’s quite difficult to create a drastic change in the field of business. There is a number of business projects in the market and now people are applying some brilliant ways cleverly to set up their brands and take advantage of their small business projects. But in this way, they need a huge amount for the development of their business.

Spending loads of money in order to gain success might be successful and meaningful. But the main problem is how you can be able to arrange such a huge amount. The plan is simple; you can take simple and instant loans for making your brand successful and valuable in the field of business.

Turn your dreams into reality through instant loan:

The word ‘loan’ does not indulge you in some heavy kind of loans which means some tough and strict guidelines and complicated authentication purposes. It simply requires you to fill up the application form and enter your desired amount from £100 to £1500.

If you want to get instant payday loans to fulfill your dreams, then you need to follow some terms and conditions. But definitely these are easy to follow.

Do not distract from your goals & objectives:

When you are just empty-minded and do not have a specific reason, mission and goals then surely you will never know the destinations and heights you want to achieve in your business. The best trick is to find out the goals and objectives.

You need to inculcate the values and significant decisions in your employees. When you keep your eyes on your goals and with proper focusing on minute objects consistently on the mission, then there will be no hurdle and barrier in your way of success.

Are you ready to start a high potential marketing campaign?

Now you have enough money through loan services to start a high potential marketing campaign. If you want to save yourself from high desperation then give your best inputs in order to achieve high outputs. In order to escape from this desperate and mess, you can use effective and high potential marketing strategies.

You need to publish some print & electronic ads on high-quality channels and newspapers. Start conferences with delegations and publish pamphlets, brochures, and visiting cards to different high ranked organizations.

Establish and maintain some custom reward services:

Custom rewards services are actually the high privilege of best-ranked organizations. But surely there is no harm if you start this service for your small business organization. You can maintain a strong marketing position among certain brands.

Establish those programs which create recognition of the brand. Present wonderful surprises on the customer’s memorable birthday or wedding occasion. Offer them some auspicious packages if they are using your new services. Send everyone free memberships.

Why not to considerate on free sample distribution?

When you will deliberately focus on free sample distribution then I think you will surely win the confidence of people and you will able to make your strong market position. In this regard, people will get to know more about your services and packages. After that it might be possible they spread to others to use your services, so through this cherishing way you can tremendously increase your sales.

Finding the Right Industrial Space For Your Business

Finding the right industrial space for your business can sometimes be a challenge. You have to find the right location and the best price. When you find the right place to rent or buy, it makes a huge difference in the profitability of your business.

Finding the Right Price

Finding the right price is extremely important. The first thing you want to do is look at your business’s budget and determine how much you can afford to pay for rent. Then, you want to look at your plans for growth.

If you plan on growing your business much during the next few years, it is a good idea to rent a place that has room for development. If you do this, you will have to relocate just because your sales are increasing.

The third thing you want to do is try and get a discount. A lot of times you can get a discount when you are renting industrial space if you pay for your lease upfront.

Another way to get a discount is to sign a longer lease. When there are a lot of vacancies, you can sometimes get the first 3 to 6 months of your lease for free. It is a good idea to shop around because this allows you to compare prices and locations.

Finding the Right Location

One of the most important and the factors about the location is knowing about the zoning laws. A good real estate company working for you should know about the existing zoning laws.

You want to make sure that whatever you are manufacturing, can legally manufacture in that space. Another thing to take into consideration is that rental rates will vary by location.

Generally, a metropolitan area will cost more to rent than a suburban area. Metropolitan areas can be more convenient if you are closer to your suppliers and distributors.

Moving into a more expensive urban location might be worth it if it gives you a lot better access to transportation. Having a rural or suburban location might be worthwhile if they give you cheaper labor rates and operating costs.

Is It Worth It to Have Good Neighbors?

If you have a lot of industrial neighbors that sell similar products, it could help increase the sales of your business. Before you choose a location, make sure you know what your neighboring businesses manufacture and sell.

You should also know whether or not it is in your best interest to have neighbors that target the same market segments. If your products are similar to your neighbors, but you do not overlap very much, you may be able to pick up additional sales. Having bad neighbors may make it more difficult for you to find good employees.

It may also make it more difficult for you to sell your products. If you find a good real estate brokerage company that specializes in industrial properties, they should be able to know the neighbors and help you find a great industrial space.

 

Warren Paine

Warren is the senior mortgage loan officer who has worked in mortgages and loan industry since 1995. He study in Harvard and major in Finance with a Bsc. Honor Degree. He possesses a Paralegal Certificate as well.

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