Types of Business Licenses and Permits

The last thing you want to find out after starting your business is that you have failed to conform to the law by not filing for the right permits for your business. Before establishing a small business, you should pay attention to your town, city, and county regulations. In most locations, every business needs a basic license which is sometimes called a tax registration certificate. Apart from this, other permits and licenses may be required as well.

Business licenses and permits are issued at all levels of government – federal, state and local (city, county, or town). Depending upon the kind of business you are running, you may need to apply for licenses at multiple levels. For example, if you decide to open a restaurant in the city of San Francisco, you will need a business license and health permit from the city of San Francisco, sales tax license from the state of California and a federal tax ID number from the U.S. federal government.

Not sure what kind of license or permit you need for your business venture? Well, as usual, we’ve made it simple for you. Below is a quick checklist covering the most common federal, state, and local licenses and permits you may need to acquire before commencing business:

Business License – This is the basic license that you will need to operate a business legally. If the business is located within city limits, a license must be obtained from the city; if outside, it is procured from the county. Contact your city’s business license department to file an application. Also remember that you need to pay an annual fee.

Federal Employer Identification Number (EIN) – Also known as a tax identification number, this is required for almost all types of businesses. Depending on where your business is located, you may also need to acquire a similar tax identification number from your state.

Zoning and Land Use Permits – Before you start your business, you have to find out if the space you are going to use is properly zoned for the kind of usage that is planned. You may need a zoning compliance permit. Zoning laws regulate off-street parking, waste disposal, and the size, construction and placement of signs.

Health Department Permits – If your business involves the preparation and/or sale of food, you will need a county health department permit. Note that the health department will inspect your facilities before issuing one.

Sales Tax License – This license is essential before you can sell almost any product or service in any state.

Fire Department Permits – Businesses such as restaurants, day-care centers or any other that attract a large crowd need a permit from the fire department.

Special State-Issued Business Licenses or Permits – You may need special licenses if your business involves the sale of certain types of products including liquor, lottery tickets, gasoline and firearms.

Special State-Issued Occupational / Professional Licenses – In many states, people in certain occupations must have licenses or occupational permits. State licensing is typically required for auto mechanics, plumbers, electricians, building contractors, collection agents, insurance agents, real estate brokers, repossessors and personal service providers (beauticians, cosmetologists, therapists and masseurs). If you are thinking of starting any of these businesses, you will have to pass state examinations in order to get the permit. Contact your state government offices to get a complete list of occupations that require licensing.

Special Federal Business Licenses or Permits – You may also require special business licenses from the federal government if your business involves investment advising, drug manufacturing, preparation of meat products, broadcasting, manufacturing tobacco, alcohol or firearms.

Licensing and permit requirements for small businesses vary from state to state; it is therefore a good idea for you to contact your state and local government to determine the specific obligations for your new business.

Various Types Of Loans Available For Business Startups

Getting financial help can be difficult for small businesses. So, loans are a great way out. Some of the loans are beneficial for startups whereas others are better suited for well-established companies.

There are various kinds of loans available these days, which we shall discuss below.

Bank Loans

For owners of small business who require a considerable amount of cash flow, bank loans are an excellent option because they usually have lower rates than any other type of financing. If any business owner is planning to avail loan from banks then they must provide complete financial information, a good business plan, and a guarantee. However, smaller local banks have easier underwriting for loans. When you are planning to take financial help from a bank, then you must take into consideration the processing time taken by banks.

Credit Cards

Many small businesses have been established with funding available from personal credit cards. This is because it is readily accessible cash, and moreover, personal credit cards are easier to get hold of than a business loan from a bank or elsewhere. This does not imply that it is the best choice for your startup or business.

When you are considering the merits of various types of loans you can avail, you need to think about interest rates which would apply. Credit cards naturally have a higher rate of interest than loans. What’s more, is making use of personal credit to support a business is dangerous. If at all the business you started fails, then you would be damaging all your credit and you will be left nothing much for your future.

Lines of Credit

Most of the banks which offer loans also offer lines of credit. The advantage of this type of funding for small business is its flexibility. It is good for additional cash flow when a particular business opportunity awaits you and you require funding. They can be easily availed in the form of credit card. By using a line of credit for various business expenses, you can keep track of the accounts used for business and for personal purchases.

Alternative Lending

You will find new players in the territory of lending funds for small business. They are called as alternative lenders. Alternative lenders provide loans to the owners in the type of quick and flexible funding.

Unlike banks alternative lenders use borrowed capital and make a broader range of advertisement like comments on social media sites, online reviews, and so on. This enables funding to be easily accessible, and most of the business owners will find out in no time if they are accepted. Borrowers usually pay a higher rate of interest in this type of funding. But, it is more advantageous for a business owner who is in need of quick cash.

So, if you are in need of funds to start your business, various types of loans can be what you can resort to.

Common Types of Participative Meetings

There are many types of meetings. Most meetings fall into the non-participatory category, where attendees are briefed on new information rather than asked to participate in the meeting process. The best meetings are highly participative, where everyone in the meeting contributes to the purpose of having the meeting. When scheduling a meeting, ask “What type of meeting or approach best fits the purpose and meeting attendees?” This will help in determining if more than one type of meeting needs to be held or if a combination of meeting types is possible. Consider the definition and common uses for the different types of participative meetings; such as decision-making, list generation, problem solving, project planning, or strategic planning. Then determine which best fits the purpose and participative needs of upcoming meetings during the planning stage.

Decision-making meetings review different alternatives and decide on best alternatives to select for implementation by a specified deadline. This type of meeting requires that key decision makers attend and should be held if the group is required to make and then support or carry out the decision. The tool used most often in decision making is a Pro/Con list. However for a highly complicated or technical decision a criteria grid may yield a better result.

List Generation meetings will create a list of ideas, alternatives, solutions, issues, etc. for discussion. After creating the list, a discussion to narrow the list may follow in the same meeting, prioritizing or voting on the list of items may occur, the list may go to someone else to work with, or planning of another type of meeting may follow for utilizing the list. Brainstorming is the easiest and more popular tool used for list generation. Diagramming tools such as mind mapping or fishbone may also be used as they use specific categories to focus the list generation.

Problem Solving meetings are used to resolve business and process problems or to determine potential issues and how to handle them. These problems could reference production, quality, services, or other things. In order for problem solving to work, those closest to the problem must participate, in other words representatives of each area affected by the problem should agree that a problem exists and be involved in finding the solution. This is seldom a single meeting as it typically takes a series of meetings to move through the process that includes problem definition, research, analysis, solution selection, testing, and implementation. Problem solving requires a defined process and method to root out the true problem and then find the best solution. Many great tools exist for this purpose under the topic of quality improvement.

Project Planning meetings are specialized to a certain task, job, or project and extend through planning and implementing the project from opening until end of project. These meetings work best when they consist of project team members, leaders, and sponsors or customers. Additional project related meetings may be for project plan updates, solving problems, reviewing budget, celebrating accomplished milestones, and evaluating risks. The tools used in project meetings will include the project schedule listing phases and milestones, as well as many of the same tools typically used in list generation, problem solving, and decision making.

Strategic Planning meetings are typically held annually to determine the strategy of a group or organization. The results of such meetings are usually vision, mission, goals, business ventures, and future direction. The strategic planning meeting may be one long meeting or several meetings spread out over a specified period. After defining the strategy, then a communication plan or deployment plan is developed. Future meetings are typically status of plan accomplishment, problem solving, or other needed revisions to the strategy and therefore no longer called strategic planning but instead change management. A tool often found useful in this type of meeting is a SWOT Analysis regarding the business efforts, products, or services of the group or organization. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

With an understanding of the definition and common uses for different types of participative meetings, it should be easier to determine which best fits the purpose and participative needs of upcoming meetings. It is important to remember that the best meetings are highly participative, where everyone in the meeting contributes to the purpose of holding the meeting. Therefore, always before scheduling a meeting, ask “What type of meeting or approach best fits the purpose and meeting attendees?” Determine if the meeting purpose is decision-making, list generation, problem solving, project planning, or strategic planning and then select the meeting type and the best tool to use to accomplish the meeting purpose.

NOTE: The types of meeting listed in this article and their definition are adapted from the book “R.A!R.A! A Meeting Wizard’s Approach.”

The Different Types of Audio Visual Presentation Equipment

If you need help in being productive, the answer is the use of Audio Visual Presentation Equipment. There is a wide selection at most of the online web stores. These sites are user-friendly, and you can easily browse through and select the items you may need. These items range from the simple flip chart, to overhead projectors as well as the more complex LCD/DLP projectors.

Some business companies are yet comfortable using the olden day’s equipment – and these are yet freely available. However, with the advancement of technology there is a wide range of the latest models as well. These websites offer very competitive prices and a personalised service. You can always expect them to help you in choosing the most appropriate equipment depending on your presentation.

Given below is a list of some of the basic Audio Visual Presentation Equipment and its details:

LCD Projectors

There is a range of them with a wide choice of specifications. You can choose a projector based on the capacity of lighting that you will require, the clearness of the image, resolution, zooming power and so much more. The rental charge will depend on the quality and brand of the projector.

Overhead Projectors

An overhead projector is very basic but is one of the most reliable projectors which are widely used today. This projector displays an image to a much larger proportion onto a screen or onto any white surface, making it possible for the audience to view even from a distance. The prime function of this projector is to enlarge images for easy viewing by the participants/audience. These images are made on transparencies.

TV and Video

Televisions and videos are an important part of Audio Visual Presentation Equipment. They are available in a wide range with built-in DVD players.

Projection Screens

A projection screen is a surface and a support structure used to display a projected image so that the audience can conveniently view the image. These screens are available as wall screens and tripods.

AV Trolleys

AV Trolleys are required for overhead projectors, television and any other equipment.

Other Presentation Equipment

These include microphones, CD Radio Cassette players, remote controls, pointers, conference kits and much more.

Computer Based Displays

Computer based displays are also commonly used for audio visual presentations. These can be on the laptop and presented via data projectors. Computer-based presentations are more professional and modern. They are more modern and advanced than the slides that were used in the past; making a smooth transition. These visuals can be enhanced with the use of sounds and videos.

Designing Visuals

Good designs will give you good brand image and help get your marketing message across effectively. The preparation of audio visuals can be handed out to a professional, if you are facing time constraints. Design agencies are very competent in carrying out these types of jobs. A professional will always know how best to design your visual and it is best that they are kept simple and uncluttered.

Today the world expects more visual than audio. Many decades ago visual equipment were not very well known. Television, computers, films now play a vital role in every person’s daily lives.

Three Special Business Plan Types

Though it has undergone many changes, the business plan is still around. No longer limited to the traditional 12-15 page type-written document, a business plan can be exciting and engaging as well as useful. Many of us realize that it’s the planning process, and the associated research and soul searching, that is so valuable. The finished plan is just icing on the cake.

Just as there are many types of entrepreneurs and business ideas there are many kinds of business plans. Here are three that deserve some special attention.

The “Accidental Entrepreneur” Plan:

Believe it or not, it happens quite often. An impulse, a hobby, or a passing notion turns into a business without warning. One day you’re handing your extra back-yard tomatoes or homemade cake to the neighbors, and before you know it you’re filling out the forms for a booth at the local farmer’s market. Perhaps you create a unique bit of hand-crafted jewelry and wear it to school or work, and then find your phone flooded with messages like, “Where can I get one?” and “I’ll pay you to make one for me.”

When you’re writing a business plan in a situation like these, you need to address a few issues the intentional entrepreneur has already pondered. The first is do you really want this idea to become a full-blown business? Certainly it’s flattering when you realize there’s a market value for something you were doing anyway, but that doesn’t always mean you should launch a business. A lot of accidental businesses form around fads or seasonal items, and may not be robust enough to function as year-round, money-making, enterprises.

Next you will need to carefully examine what actually goes into your offering. How many hours does it take to create those one-of-a-kind bracelets? How much does it cost to bake a dozen of your special recipe cookies? How much research goes into “whipping up” a website? Making tangible goods requires space. Do you have room to grow enough squash to actually generate profits? Are these numbers you could sustain beyond the occasional personal or family use of your product or service?

The business planning process can be very helpful to “accidental entrepreneurs” as it allows you to decide which ideas are best left as hobbies and which ones could provide some real cash flow.

The “Back of a Napkin” Plan:

It is the source of entrepreneurial legend and lore, the million-dollar idea that was hurriedly scribbled on a bar napkin. Yet, for most potential business owners this option for business planning remains a fantasy. However, like any myth there is a tiny grain of truth inside. A quickie business outline can work as a launch plan under the right circumstances.

If you need to get going quickly to ride the wave of a fad before it fizzles, then fast, bare-bones planning may be all you’ve got time to execute. This works best when you’ve already got the infrastructure in place, perhaps from previous projects or an established business, and you can simply shift energy and resources to the new idea.

When you, and your partners if any, have all the core skills and industry knowledge you need to start right away without seeking experts, napkin notes may be enough to get going. Let’s say you are already an expert in technology and social media. Then you, and your team, probably don’t need a detailed plan to start developing a new app. You will draw on your knowledge and experience, and you understand that you might need to go back and do some more detailed and formal planning later.

Certainly when you reach the point where you are looking for investors or lenders, you will move beyond those first casual notes. Until then, drawing upon your expertise can allow you to quickly jump into the market and perhaps gain a competitive edge by using a minimalist plan.

The “One Pressing Issue” Plan:

Business planning does not stop the day you open for business. Under the best of circumstances you should be revisiting your plan once or twice a year to see how things are going, and where perhaps you’ve veered away from your original goals. Remember, changing the direction of a business isn’t always bad, but it should be intentional.

Then there are the moments when something seems to be going wrong, when one or more areas of the business just don’t seem to be working. Cash flow is anemic or the marketing message is flat. Perhaps customers have shown a marked interest in only one particular product or service, ignoring all your other offerings. This means it’s time to revisit your business plan, more precisely it’s time to revisit the questioning process that helped you craft your plan.

Look at the assumptions you baked into your original plan. Did the city follow through on opening that new park across from your location? Were insurance rates what you expected? How many hours of accounting or web design help did you really need? Are your online inquiries out-stripping your face-to-face sales? Or vice versa?

Sometimes no matter how much you research, plan, or test, things don’t go as expected in a business. This isn’t necessarily a herald of failure or a sign that you’re not cut out for entrepreneurship. Life and the marketplace are both unpredictable, and plans need to be fluid and responsive. The “One Pressing Issue Plan” is simply a reflection of a normal evaluation process.

While I still recommend the business planning process, I caution you to realize that a beautifully crafted document does not always equal business success. I’ve worked with many entrepreneurs who successfully launched without a plan, and some with beautifully written plans that never materialized. You and your business idea are unique. Your planning process will be unique as well. Be wary of one-size-fits-all advice or pronouncements from experts about how you should proceed.

Types of Angel Investors As It Relates to Small Business Investments

There is a large misconception that there is only one type of angel investors. However, there are many different attributes that make these individual funding sources very different from each other. This is primarily due to the fact that many angel investors have varying investment objectives as it relates to what they want in a small business investment. Foremost, the wealthiest of these funding sources are looking to make large scale investments into small businesses as they want to generate the highest return possible on their capital. Additionally, these investors typically do not want an ongoing stream of dividends paid to them on a monthly or quarterly basis. However, private funding sources that do not have a substantial amount of small business investment capital are more focused on generating a recurring stream of revenue from your business. As such, it is important that you focus heavily on the type of individual funding source that you intend to work with as this may impact certain aspects of your business including your cash flow analysis and profit and loss statement.

If you are working with a smaller angel investor then you are going to need to factor in the ongoing payments that are associated with your business. As such, you may not have enough capital on hand in order to make appropriate reinvestments into property, tangible assets, equipment, and expanded working capital. If your business has solicited capital from a wealthier investor then you may be in a much better position to make substantial reinvestment into your business while generating a much higher return on the equity of the business. Additionally, one of the benefits to working with a high end private funding source is that you can always go back to them with additional capital requests in the future. They will most likely have the appropriate capital on hand in order to assist you with aggressively expanding your growing business.

In closing, it is very important to discuss exactly the type of angel investor that you intend to find as it pertains to your start up business or expanding venture. It is imperative that you profile anyone that expresses an interest in regards to providing capital to your business on a one time or ongoing basis. Of course, we always recommend that you work closely with appropriate counsel that can assist you in making these determinations as it relates to your ongoing business operations. Additionally, you are going to need to make an appropriate examination of your business as it relates to your total capital needs.

The Four Types of Education You Require to Become a Successful Business Entrepreneur

As an aspiring successful business entrepreneur, you dare to tread a different path to 97% of society. You seek to become rich so you can design your own life independent of your paycheck. Instead of a J.O.B. you prefer to work for yourself and be your own boss, maybe work from home or anywhere you like, and to become financially free to live out your dream lifestyle.

Whether you start a traditional business, a home based business or an internet business, Robert Kiyosaki (Rich Dad, Poor Dad and The Business School) talks about three different types of education that are required for the successful business entrepreneur. If you want to achieve this financial freedom to live your own life, you need scholastic education, professional education and financial education.

Let’s unpack those three first.

Scholastic education basically is what you get at school. In the main part, it’s about basic literacy. You are taught how to read, write and do maths, very important for survival in today’s information age. Throughout our childhood we are taught the importance of getting a good education. As adults, we are encouraged to become lifelong learners and invest in our personal development. It is pretty much indoctrinated in us that getting good grades at school, even going to university, is the best way to get a high paying job.

Professional education is what teaches you how to work for money. This type of education you can get from apprenticeship and training as well as through to your work experience. This type of education can range from apprenticeships in a trade or service to higher level training to become a doctor, lawyer, accountant, pilot, and so forth.

Financial education is rarely taught at school or at home or anywhere else for that matter! This is where you learn how to make money work for you (as distinct to you working for money as above). Most people don’t even realise that scholastic and professional education will only get you so far.

Without financial or wealth education, you may not appreciate the ‘different path’ available to you and will end up always working for the rich, not becoming rich. This is how Robert Kiyosaki’s distinguishes the two with his Rich Dad, Poor Dad concept.

However, these days if you are doing business mostly on the internet, there is, in my opinion, a really crucial fourth type of education and that is social education. So I’ll add this one into the mix.

Social education is important in any business where you are making sales and dealing with customers. But online, it’s even more important since you cannot ‘meet’ in person and much of our social behaviour relies on body language and visual and auditory cues.

Social education is about developing “emotional intelligence” towards others. It is learning to communicate effectively with people with regard to their situation, needs and feelings. It’s about active listening and empathy. It’s about connecting with a person’s highest hopes and worst fears.

Some would say that you develop the ‘sales’ skills to manipulate people. I advocate you develop social skills to match what you can offer to what people are looking for! (In that scenario, there is no need for a hard sell.)

On the internet, social education is critical to every part of your marketing, sales and support. This is because buying decisions depend so much more heavily on people’s sense of trust. Being seen as an authority and a leader builds your online credibility.

This is evident in the growing trend towards social networking and personal branding – what is termed “attraction marketing”, which is nowadays the business model of all successful internet marketers. People need to know you, like you and trust you before they will do business with you, become a customer or partner with you.

Social education is therefore one of the cornerstones of effective marketing. It teaches you aspects the psychology behind different personality types, how people make decisions, how to attract others to you, how to reach win-win outcomes, and so on.

If you spend time learning how to translate that knowledge and understanding into your personal branding, your copy writing, your presentations and your conversations, it will skyrocket your business success.

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