Business: Why you should stay out of court, when possible

In all but the most extreme cases, you want to avoid going to court either as a plaintiff or a defendant. Think about it. Do you really want to shell out the huge legal fees you are likely to incur? Or have your time tied up for months or even years? Do you want, after all the expense and time, to lose your case? Courts offer uncertain outcomes. Even if you are right and see the situation as clear-cut, you can still lose your case.

You might not be drawing a big salary, but your time and the time of your key managers is valuable. Time spent in court or thinking about a court case is time spent away from growing your business.

The outcome of going to court is extremely uncertain, and a loss could significantly change the way you do business. And, win or lose, a court case will have the same effect on your cash flow—flowing out.

The uncertainty of the outcome can be exacerbated by the timing of the outcome. It is difficult to predict how long a court case will last. While a small claims hearing might not take years, the possibility of any other type of case lasting that long is quite real.

If you suspect that you might eventually be forced to pay out a settlement, you might get lulled into delaying the end of a court case. But remember that you need to disclose outstanding suits in your financial statements, and such disclosures may affect your ability to borrow or raise cash. Also, settlements can be subject to interest.

Avoidance

The best way to stay out of court is to avoid problems before they occur. Run your business within the law. Run your business with humanity—make your workplace a fun place to be. Develop good, solid employment policies, especially in the critical areas of hiring, promoting, firing, and sexual harassment.

Use contracts whenever appropriate, with all the key details spelled out clearly in writing. And include in your contracts, whenever possible, a proviso that directs all disputes into binding arbitration, not court.

Finally, don’t be shy about consulting an attorney whenever you have questions about employment or business decisions that may portend a legal risk for you. Spending a few bucks for a half of hour advice here and there is certainly worth saving the major expense of a court battle.

Early response

In many potentially litigious situations, an early response may avert a legal suit. Often legal claims arise out of misunderstandings, which good communication can alleviate.

For example, if you have decided not to pay the full bill invoiced by a supplier because the quality of the goods delivered was not satisfactory, call the supplier with your complaint immediately. Back up your verbal communication with a letter to that same supplier. You need to get the vendor to see the quality issue from your point of view and instill empathy for your situation. Just not paying the bill, without apprising the vendor of the problem, is begging for a court appearance.

Similarly, if a customer is not happy with goods supplied by you, handle the situation as soon as possible. By listening to that person’s complaint, trying to understand the problem from his or her perspective, and showing empathy for the situation, you have gone a long way towards avoiding a legal suit. And, you may have retained the customer!

If an employee complains about sexually hostile behavior in your workplace, promptly take action to eliminate the behavior. This may satisfy the victim and keep you out of court altogether. But even if the case does end up in court, your attempts to correct or alleviate the problem will count in your favor.

Generally, in any negative business situation, respond quickly and maintain dialogue and rapport with the other party. This policy never hurts!

Settlement meetings

A face-to-face settlement meeting with the opposing party can help avoid the courtroom. Any such meeting should be conducted on a peer-to-peer basis. This means company president to company president, for example. Of course, if you are the sole proprietor of a company and the other party is IBM, don’t expect the president of IBM to meet with you. But do insist on meeting with someone in as similar a position to yours as possible. For example, if you are trying to resolve a problem with a large supplier, try to speak with a product manager or regional sales manager—not your regular sale representative or the purchasing agent for your account.

If you encounter problems in attempting a settlement with another party through informal meetings, try a more formal approach. Try meeting in a neutral location with attorneys for both parties in attendance.

The presence of attorneys signals confidence. It sends the message that both you and the disputing party are willing to pursue the matter through the courts if necessary. Through such a meeting you will be able to ascertain the strength of the opposing party’s claim or defense, and hear his or her arguments much as you would should the case go to court. Of course, the opposing side will be able to size up your case or defense as well.

Arbitration

If you can’t resolve an issue with calls or meetings, consider binding arbitration. In this case, both parties agree on an arbitrator (often a retired judge arranged for through an arbitration organization) and agree that the results of the arbitration will be binding and may be entered into the prevailing court. Be sure to get the agreement to arbitrate in writing.

In court

There are exceptions to avoiding or delaying an appearance in court. Sometimes you will want to get there as quickly as possible. If your rights as a small business owner are being wantonly trampled on by a large corporation, think about going for it. Corporate giants typically figure that a small entrepreneur will back down because he or she hasn’t got the funds to do legal battle or will jump at the first pathetic settlement offered.

But do be absolutely sure that you want to pursue your claim through to resolution before you file with the courts. Have your attorney advise you. Find out what the costs might be, what the time element might be, and what the various outcomes, good and bad, might be.

* Source Streetwise Business Tips

How a Contract Can Protect a Small Business

Like most people, small business owners tend to shy away from signing anything. They avoid contracts like the plague. But this is a risky way to do business.

When you are making a major product or service sale or purchase, you need to get the details of the transaction in writing. If you don’t, you will inevitably find yourself in the middle of a heated discussion over specific terms. Does the purchase include freight costs? Can sanctions be imposed if delivery isn’t met? What if the services rendered are considered unsatisfactory? In many cases a purchase order and/or a written estimate will provide the answers to these types of questions and serve, in effect, as a contract.

For small, routine purchases and sales, you may wish to have an attorney review the basic purchase order or sales documents that you will be using. For larger or unusual transactions, you may wish to have your attorney review the contract you intend to use, if not draft it. After you have been in business for a while and have learned a thing or two from your attorney, you will gain the ability and confidence to write many of your own contracts.

For more important contracts, retain the original copy containing the original signatures from all parties. True, in many situations a photocopy or even an agreement without signatures offers adequate proof of a purchase or sale agreement, but nothing can beat an original copy as legal protection.

Any substantive changes to a contract should be noted in writing. If they are in the body of the contract, then each change should be initialed by all parties involved. If it is in the form of an addendum, it should be signed by all parties involved. A contract should specify that it represents the entire agreement between the parties and that any changes must be in writing.

To avoid court and the legal costs associated with lawsuits, contracts should, generally, have a clause specifying that disputes will be arbitrated. The method of arbitration should be stated and the results of the arbitration should be held binding.

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How to start an online bookkeeping business

There are many individuals that do not like doing bookkeeping. This, of course is great news for anyone who enjoys the ins and outs of monetary record keeping. Lacking time or inclination, entrepreneurs and growing businesses usually want to facilitate their money housekeeping despite the supply of easy-to-use accounting software. Many of them rely on online bookkeepers. With the advent of the internet, online book keepers are available – these are bookkeepers doing the books for clients located somewhere else in the world or to someone just few meters from their location.

Independent bookkeepers are in demand even throughout economic downturns because businesses knew that if they are not careful concerning their cash, they soon will not be in business. As a result, bookkeeping are often a good business year in and year out. Indeed, for many people, online bookkeeping business is a lucrative endeavor.

So how do you start to become an online bookkeeper?

To achieve success, freelance bookkeepers got to be thorough, dependable and correct as well as skilled in using accounting and spreadsheet software. Attention to details, and honesty and integrity are crucial. If you'd be tempted to go along with a client who asks you not to report or to hide income, it's best to look for another business/clients for obvious reasons.

If you've already done financial or accounting work for an employer, you're probably ready to take on clients on your own without special training. If you enjoy working with numbers but lack such a background, you can acquire the training you need to go into bookkeeping from a number of sources by searching bookkeeping trainings online. It is best if you have a CPA friend that can answer your questions for some complicated concepts/issues.

Once you are ready you can start advertising or searching for clients online, and start from there.

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How to be a Successful Entrepreneur

Every year, hundreds of thousands of businesses are started. Most will fail, some will muddle along, and a few will thrive. Which ones thrive, and why? The reason some businesses experience spectacular sales and profit growth from the start isn't because they had a lot of money at the beginning. Their fast growth can be attributed to the fact that they were put together the right way.

In every instance, the founders either had or acquired the experience and knowledge they needed to startup and run the business. They recognized what their weak points were, subsequently nurtured alliances, and acquired the skills they needed to start their company off right. They also understood how the various parts of the business fit together to form a total structure and knew that if one part was missing, the total structure would break. For example, they knew that a successful sales plan is directly dependent upon support from the marketing and promotional plans, and that the strategic business plan acts as the glue that holds all the subplans together so that they work in concert.

DEVELOPING IDEAS
Clever product and service ideas are a dime a dozen. Everybody has one, and most of them never get implemented. The successful entrepreneur starts with a basic idea. This idea is first tested to staying power. Can it be used to grow a customer base, and will it be profitable? The pseudo-entrepreneurial itch often ends before the basic idea gets tested. Studies show that a high percentage of people who open new businesses do so because they are frustrated with their current job. They'll jump into any business venture that comes along without first checking it out. Ninety percent of this group will go out of business in their first year.

Those that make it are smart enough to recognize the symptoms of their emotional state. They are acutely aware that they may be in a vulnerable position. As a result, they may hang on to the security of their current job and start a business on the side. They'll make the move to become a full-time entrepreneur when the time is right for them and after they have thoroughly checked out their business venture ideas. There are three basic concepts to keep in mind as you develop and refine your business start-up ideas.

Be Creative
The opposite of creativity is rigidity. Entrepreneurs are not rigid in their thinking. If you cling to the old ways of doing things because "that's the way we have always done it," you'll never come up with the new solutions that are demanded by today's small businesses. To test your creative ability, practice finding ways to tie together seemingly unrelated ideas.

Understand Every Problem
You must have a clear understanding of what it is you are trying to achieve and be able to identify the obstacles that stand in your way. Break each problem down so that you understand it and know what you need to do to eliminate it. For example, the problem may be that you need more space. Why do you need more space, and what are the alternatives? An alternative may pose a new set of problems, but if they reduce the magnitude of the original problem, the alternative may be a more viable option.

Brainstorming
When you come up with a solution to a problem, brainstorm the solution with as many qualified people as you can find to avoid judging your own answer. Accept modifications that make sense, and be prepared to replace the solution with a totally new and better alternative. The key to the brainstorming process is to be objective. Brainstorming is an excellent way to come up with a new set of ideas for new products, services, or improvements that could accelerate the growth of your business.

Business Ideas

Wondering what type of business you want to go into? What are your interests? Here are few business ideas you can consider:

Retail business
Don’t be tempted to start a retail store just because you find a cute, affordable space. Location means everything in retail and a good location usually costs a lot of money. In fact, a super location, good signage, and an attractive storefront may be all the marketing you need.

• Computers
• Office supplies
• Software business
• Luggage business
• Maps
• Rare books business
• Flowers
• Candles
• Jewelry business
• Pets
• Appliances
• Ice cream business
• Wine
• Baked goods
• Auto parts
• Coffee and tea
• Children’s clothes
• Paper goods
• Sporting goods
• Medical equipment

Secondhand stores
A secondhand store can provide a reasonable income with minimal investment and minimal risk. Buy used items cheap enough so you can mark them up at least 100 percent. If you are considering selling expensive items like cars, consider selling on consignment—never actually taking ownership of the items, but displaying and selling them for a hefty cut of the sales price.

• Cars
• Furniture
• Office equipment
• Computers
• Books
• Boats
• Antiques
• Industrial equipment
• Auto parts
• Formal dresses
• Baby clothes
• Medical equipment
• Televisions
• Musical instruments
• Electronic games
• Auto parts
• Phone systems
• Sports equipment
• CDs
• Lawn care equipment

Services
Service businesses offer a lot of advantages, especially for start-ups. They tend to be local and you usually don’t have to compete with as many heavily financed national or international corporations as you might in a retail, wholesale, or manufacturing business. Service businesses also require less capital. You don’t need to finance a large inventory or work-in-progress, and customers can usually be asked to pay immediately upon completion of the work.

• Blade sharpening
• Manicuring
• Athletic recruiting
• Funeral home
• Mobile disc jockey
• Hot-air balloon rides
• Tour packaging
• Portrait photography
• Temporary employment
• Resume service
• Telemarketing
• Window washing
• Chimney sweeping
• Carpet cleaning
• Lawn care service
• Bungee jumping instruction
• Wake-up service
• Dance instruction
• Trophy engraving
• Monogramming service

Food and Restaurants
Restaurants have a high failure rate. Steady, loyal patronage may take years to build up. Owners of successful restaurants usually have extensive restaurant experience, work endless hours, and either rely on their large, close-knit families for assistance or have a knack for attracting, retaining, and motivating good kitchen and service staff.

• Deli
• Food service
• Espresso bar
• Seafood
• Gourmet
• ice cream
• Family style
• Steak house
• Sushi
• Mexican
• Sports bar
• Chinese
• Vegetarian
• Bagel
• Indian
• Thai
• Greek
• Italian
• Catering
• Pizza
• Pushcart

Consultancies
A consultancy is a great opportunity if you have many years of in-depth and specialized expertise that is in high demand. Those consultants who tend to be more successful are those who are in the later stages of their careers, have developed a rich network of contacts and references in their industry, and don’t mind working alone.

• Meteorological
• Engineering
• Customs
• Noise control
• Government controls
• Disability
• Child development
• Wellness
• Gerontology
• Forensics
• Medical management
• Nutrition
• Food manufacturing
• Gardening
• College
• Relocation
• Marketing
• Small business
• Employee benefits
• Database

Rentals Business
Rentals are not as easy a way to make money as you might think. On the income side, the typically modest rental fees don’t seem to amount to much. On the expense side, you’ve got marketing costs, repair and maintenance costs, expensive liability insurance, and theft costs. One positive note—periodic sales of rental items might net more than you paid for them new!

• Automobiles
• Televisions
• Furniture
• Office equipment
• Carpeting
• Lock boxes
• Storage facilities
• Party equipment
• Vacation homes
• Bicycles
• Musical instruments
• AV equipment
• Computers
• Videotapes
• Copy machines
• Outdoor furniture
• Tuxedos
• Limousines
• Carpet cleaners
• Arcade games

Wholesale business
If you’re thinking about opening a wholesale business, think twice! While it’s easy and quick to reach a high level of sales, you’ll find it difficult to make money and keep afloat. Most wholesalers operate on very thin profit margins that are possible only because of highly sophisticated computer systems and extremely efficient warehouse and selling systems, tight credit and collections control, and most of all, a large volume of sales over which to spread overhead.

• Industrial supplies
• Textiles
• Retail equipment
• Food items
• Herbal products
• Restaurant equipment
• Footwear
• Luggage
• Sports equipment
• Vending machines
• Computers
• Appliances
• Educational software
• Coffee
• Carpets
• Clothing
• Office supplies
• Books
• Tapes
• Flowers

Advertising Business
Publishing a magazine, newspaper, or other vehicle to sell advertising space is very tempting because the profit margins can be very high. But, no matter how good your product, advertising never sells itself. Save up a lot of energy, and a lot of money for paying good salespeople.

• Classified ads
• Handbills
• Magazines
• Videotext
• Drive - by broadcasting
• Hotel information systems
• Mall kiosks
• Taxis
• Public transportation
• Subway systems
• Radio
• Broadcast television
• Cable television
• Yellow pages
• Card decks
• Giveaways
• Billboards
• Trade show handouts
• Pens
• Stickers