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[H1452]How To Operate A Business

by Kathleen Gage, Kat

How often has someone thought of starting a business based solely on the fact they think it will be easier than working for someone else. Fact is, owning and operating a business can be one of the most grueling experiences you will have. Granted, there are many advantages, but unless someone has actually run a business there is much to consider before you make that decision.

The following information will help you operate a business more professionally. With today's technology there is no reason you cannot have the look of a large company even if you are working off your kitchen table. If you have a home based business it is suggested you have a room dedicated to your business. This helps you to stay focused and there are some major tax benefits in doing this.

PROFESSIONALISM
-Choose voicemail rather than an answering machine. There is a major difference in the perception to the caller.
-Toll free number. Check with your local telephone company to find out if this is available to you if you will have a lot of clients/customers from outside your calling area.
-Have a separate business phone line. You do not appear very professional if your children answer the phone.
-Email. Avoid using free services due to limitations and perceptions.
-Dedicated fax line. A small business will appear as such if the fax number and phone number are the same.

RUNNING AN OFFICE
-Stay organized. The more you can keep yourself organized the easier it will be to respond to customer's requests in a timely fashion.
-Color file folders. A great way to organize your file system. Each color indicates a category.
-Dedicated file cabinets. Separate personal papers from business.
-Form letters. Don't reinvent the wheel with every letter you write. Keep form letters on a disc or your hard drive.

FINANCIAL END of running the business. There will be many costs to running a business. The following are some of the investments you will need to consider.
-Medical insurance
-Separate phone lines
-Taxes
-Marketing material
-Office supplies
-Products
-Service fees
-Accountant
-Financial Planner
-Bookkeeper
-Keep excellent records
-Keep all receipts
-Advertising

THINGS YOU WILL NEED IF YOU WANT TO STAY COMPETATIVE
-Business license
-Incorporate
-Bookkeeper
-Financial planner
-Marketing material
-Business cards
-Letterhead
-Envelopes
-Folders
-Letters of referral
-Bio sheet
-Product or service sheet
-Web site

PROFESSIONAL ORGANIZATIONS
-Which ones are most beneficial for you to join? To get the biggest benefit from any organizations you need to get involved. Use the monthly meetings to network.
-Dues and fees. How much are the annual dues and cost for monthly meetings?. Figure that in your budget.
-Conventions. Are there any conventions you need to go to? What is the time and cost investment? Talk to others who have gone to find out if it will be worth the investment.
-Network. Most of your business will come from referrals.

QUALIFYING THE BUYER
-Who is my customer?
-Do they have a budget for my product or service their budget?
-Do I want to work with them?

PAPERWORK
-Invoices
-Contracts
-Service agreements
-Letters

MANAGE PROFESSIONAL IMAGE
-Responding to requests by providing what the customer needs. If you are not the person for the job, who can you refer (that's why networking is so important)
-Follow-up. Do your follow-up in a timely fashion
-Develop a good relationship with the client
-Return calls as soon as possible
-Send information in a timely fashion
-Priority mail is often less expensive than first class. And it can be more impressive to your client.
-Keep in touch after the fact. A mistake a lot of people make in doing business is they do a job for a client and then seem to forget the client. It is easier to get repeat business than it is to find new business, and yet, so often business owners and salespeople (which is what you are if you own a business) will look for the new customer and forget about their existing clientele.

I'm sure you are aware that a growing lawsuit epidemic is going on in the United States and it only appears to be growing. Experts claim that thousands of lawsuits are being filed each week and small business owners are prime targets. It may be a disgruntled former employee . . . a customer . . . a business competitor . . . a total stranger . . . some government agency . . . the list goes on.

It's been said that your chances of being sued are greater than your chances of going to the hospital this year? I think that may be a bit of an exaggeration . . . but I do know that more lawsuits are being filed all the time . . . and starting a business only increases your risk.

Having said all of that, I want you to know that I am an absolute believer in small businesses. They are great . . . they help make dreams come true for many people and they can be your path to financial freedom, independence and success. They are the back bone of our society and one of the main supports of our national economy. I was raised in a family where my father was a small business owner all of my growing up years. I am very pro small business.

But, small business owners need to protect themselves. The most important step you can make to protect yourself is to operate your business activities through a properly formed and maintained entity like an LLC.

The laws of each state allow the formation of LLC's to provide a layer of protection between a business and its individual owners. With our lawsuit crazed society, the number of LLCs being formed has grown by over 90% in the past few years. The primary reason is protection.

The best way to reduce the risks to small business owners is through intelligent business planning. Many new business owners think that lawsuits and personal loss will never happen to them. Please don't make that mistake. Once a lawsuit is filed, it's almost always too late to start thinking about forming an LLC . . . because liability starts when the injury occurs and forming an LLC is not retroactive. You can't go back and say . . . I should have done it.

Maintaining liability protection requires that you fully organize your LLC and then operate it properly. If you don't, then you may lose the very protection you were trying to get by setting up an LLC in the first place.

If you are going to start a business, it's crucial that you take the necessary steps to protect yourself right up front or as soon as possible. If you haven't done it yet, don't delay or procrastinate.

Wise business planning includes the formation of the proper business entity and the purchase of liability or business risk insurance when available. You cannot eliminate every possible risk when starting a business but you can substantially reduce the likelihood of a devastating lawsuit through proper planning.

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Both Kathleen Gage & Attorney Bob Montgomery are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Kathleen Gage has sinced written about articles on various topics from Marketing, Computers and The Internet and Sales and Negotiation. . Kathleen Gage's top article generates over 2900 views. to your Favourites.

Attorney Bob Montgomery has sinced written about articles on various topics from Limited Liability Company. don't run any business without using an LLC by Attorney Bob Montgomery , and. Attorney Bob Montgomery's top article generates over 2900 views. to your Favourites.