by Brenden | Jul 25, 2023 | Business Law, Small Business
Small businesses are usually the most affected by inflation. This is because they have limited access to capital, bargaining power, and pricing power compared to larger corporations. Many small companies went out of business during the COVID-19 lockdown, and those who remained afloat barely made it through.
More recently, small business owners have had to contend with inflation driving up the cost of operations while also reducing consumer purchasing power. This has forced organizations to tighten their belts to ensure they don’t go out of business. However, there’s finally some good news on Main Street regarding inflation, and the recent economic data gives small business owners the confidence to keep going.
How Inflation Impacts Small Businesses in Particular
Inflation refers to the sustained increase in the general price level of goods and services in an economy over a period of time. It means that, on average, prices are rising, and each currency unit can buy less than it previously could. Inflation occurs when there is an imbalance between the supply of money and goods and services in an economy.
Inflation impacts every sector but significantly affects smaller businesses due to their limited resources to combat rising costs. In 2022, the National Federation of Independent Business reported that nearly 90% of small businesses stated that inflation unfavorably impacted their business.
Here are some ways in which inflation can impact small businesses:
Rising Costs
Inflation often leads to an increase in the prices of goods and services. Small businesses, especially those operating on narrow profit margins, may struggle to absorb these rising costs. When overhead costs rise, small businesses are forced to either increase their prices, which could reduce customer demand, or find ways to cut expenses elsewhere, such as reducing staff or compromising the quality of their products or services.
Reduced Consumer Spending
As the general price level rises due to inflation, consumers’ purchasing power decreases. This can result in reduced spending on non-essential items, negatively affecting small businesses that rely heavily on discretionary consumer spending. Small retailers, restaurants, and entertainment venues may experience a decline in sales as consumers prioritize essential purchases.
Financing Costs
Inflation can affect borrowing costs, including interest rates on loans and lines of credit. Small businesses that rely on external financing may face higher interest expenses, making it more expensive to expand operations, invest in new equipment, or undertake other growth initiatives. This can limit their ability to compete with larger enterprises with more substantial resources.
Inventory Management Challenges
Inflation can create difficulties in managing inventory for small businesses. If prices rise rapidly, companies may face challenges in accurately forecasting future demand and determining optimal inventory levels. Overstocking could lead to increased carrying costs and potential losses if demand doesn’t meet expectations while understocking could result in missed sales opportunities and dissatisfied customers.
Wage Pressures
Inflation can create wage pressures as employees seek to maintain their purchasing power. Small businesses may face challenges in offering competitive wages to attract and retain talent, especially if they are unable to increase prices or generate sufficient revenue growth. This can lead to higher labor costs and potentially impact profitability.
Good News for Small Businesses
Most people view inflation as the Big Bad, and it is easy to see why. If you had $300,000 in your savings account in 2005, that amount wouldn’t go as far in 2023. Inflation is always happening, so by understanding this, small business owners can find ways to cushion themselves during dire times.
The Federal Reserve tries to maintain a 2% inflation rate per year. This is because anything lower than that may weaken the economy. The inflation rate in June 2022 was 9.1%. The good news is that this number has been steadily decreasing since November, and the future looks somewhat brighter, especially for small business owners.
According to the Consumer Price Index, the inflation rate in November 2022 was 7.1%, and by the time the year was closing out, it had dropped even further to 6.5%. A June 2023 CPI report confirms inflation to have cooled to 3%, which offers some great news to small businesses especially.
Small business owners are seemingly optimistic about the economy, with 25% of companies planning for capital expenditures in the next 3–6 months. This is a 4% increase from 21% at the start of the year and a 6% increase from 19% following the March bank failures.
19% of small business owners from another survey said they intend to create new jobs in the coming three months. 40%, up from 34% last year, describe their current conditions as good, while 46% report they expect revenue to increase in the next year.
Bad News for Small Businesses
Despite the uptick in optimism, small business owners still view inflation, supply chain disruptions, and labor quality as their top concerns. While companies are hiring, an NFIB survey reported that 44% of owners were struggling to fill the reported job openings. 63% of owners said they were hiring in May, but nearly 90% said they couldn’t find qualified applicants for open positions.
Small business owners may also find themselves with another situation on hand as a UPS strike looms. With the contract between UPS and 340,000 UPS workers represented by the Teamsters Union expiring on July 31, employee pay remains a sticky point. Union workers account for over half of UPS’s workforce. Therefore, a strike could be devastating for the company and small businesses relying on the carrier.
The looming strike comes 25 years after a similarly larger strike by 185,000 workers brought the courier to a standstill. The strike, which lasted for 15 days, slashed package deliveries and put a strain on the US Postal Service and FedEx, who had to pick up the pace, effectively paralyzing businesses nationwide.
If a deal is not reached by the deadline, the strike will cause broader supply chain disruptions, and small business owners may need to find alternative ways to ship their last-mile deliveries to cope.
5 Tips to Help Small Businesses Mitigate the Impact of Inflation
Monitor and Adjust Prices
Regularly review your pricing strategy and assess the impact of inflation on your costs. Consider adjusting prices accordingly to maintain profit margins. However, it’s essential to strike a balance between maintaining profitability and remaining competitive. Communicate any price adjustments transparently with your customers to manage their expectations.
Manage Costs
Analyze your cost structure and identify areas where you can reduce expenses or find efficiencies. Look for opportunities to negotiate better deals with suppliers, streamline operations, and optimize resource allocation. Implement cost-saving measures without compromising the quality of your products or services.
Diversify Suppliers
Explore alternative suppliers and sources for materials or inputs. This can help you mitigate the risk of supply chain disruptions and price fluctuations caused by inflation. Having multiple suppliers can provide flexibility and negotiation power, enabling you to secure better pricing terms.
Improve Inventory Management
Efficient inventory management is crucial during inflationary periods. Analyze your sales patterns, customer demand, and lead times to optimize your inventory levels. Avoid overstocking or understocking, as both can lead to financial losses. Consider adopting just-in-time inventory systems or implementing inventory management software to improve accuracy and responsiveness.
Enhance Customer Value
Focus on delivering exceptional value to your customers to retain their loyalty and justify your pricing. Identify ways to differentiate your products or services, such as improving quality, offering unique features, or providing outstanding customer service. Build strong relationships with your customer base and communicate the value proposition effectively.
Explore Alternative Financing Options
If inflation increases borrowing costs, explore alternative financing options. Seek out financial institutions or lenders offering competitive rates or consider alternative financing methods like crowdfunding or peer-to-peer lending. Maintaining a good credit history and financial records increases your chances of securing favorable financing terms.
Enhance Operational Efficiency
Continuously seek opportunities to improve your operational efficiency. This can include automating processes, investing in technology, cross-training employees, or optimizing workflows. By reducing waste and increasing productivity, you can mitigate the impact of rising inflation-related costs.
Stay Informed
Stay aware of economic trends, inflation rates, and market conditions. Regularly monitor industry news, economic indicators, and government policies that may impact your business. Stay connected with professional networks and business associations to gain insights and access resources that can help you navigate inflationary environments.
Conclusion
While inflation continues to pose significant challenges, the recent economic data on inflation brings a ray of hope for small business owners. As small business owners, staying adaptable, proactive, and open to embracing new strategies and technologies that can drive resilience and sustainability is important.
If you’re a small business owner concerned about navigating the challenges of inflation, reach out to Brenden Kelley Law. Our experienced team of attorneys will provide the legal guidance and support you need. From reviewing contracts and leases to advising on pricing strategies and cost management, we have the expertise to help safeguard your business against the impacts of inflation. Don’t let uncertainty hold you back. Contact us today, and let us help you secure a brighter future for your small business.
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by Brenden | Jul 14, 2023 | Business Law, Small Business
Small businesses play a vital role in driving economic growth and innovation. They are the backbone of local communities, providing employment opportunities and catering to the diverse needs of consumers. However, amidst the challenges and uncertainties of the modern financial world, accessing the necessary capital to start, expand, or sustain a small business has become increasingly difficult.
In addition, traditional lending institutions, such as banks, have tightened their lending criteria, imposing stricter requirements and scrutinizing applications more closely. According to Reuters, as of June 2023, the approval rate of small business loans was only 18.8% from small banks and 13.4% from large banks. But why are banks not willing to lend money to small businesses? This article will shed light on why it is getting harder for small businesses to secure loans from banks and the steps small business owners can take to secure financing.
Why Is It Getting Harder for Small Businesses to Secure Loans?
Securing small business loans has become more challenging due to several reasons:
- Stricter Lending Criteria: Traditional lending institutions like banks have tightened their lending criteria. This is in response to the global financial crisis and subsequent regulatory reforms. They now conduct more thorough assessments of loan applications, focusing on creditworthiness, business stability, and collateral requirements. Also, this increased scrutiny makes it harder for some small businesses to meet the stringent criteria and qualify for loans.
- Economic Uncertainty: Uncertain economic conditions make lenders more cautious about extending loans to small businesses. These include market volatility and changing consumer preferences. Additionally, lenders may perceive higher risks in uncertain times, making them more conservative with their lending practices.
- Limited Financial History: Small businesses, especially startups, often lack a robust financial history or a track record of profitability. This absence of substantial financial data makes it challenging for lenders to assess the business’s creditworthiness and repayment capacity, thereby reducing the likelihood of loan approval.
- Collateral Requirements: Many lenders require collateral to secure small business loans. This can be a significant barrier for businesses without substantial assets. Lack of collateral or insufficient collateral value can also hinder loan approval or result in unfavorable loan terms.
What Can Small Business Owners Do?
It may be increasingly difficult to obtain financing for your small business, but the money is still out there. With the right strategies, small business owners can increase their chances of securing funding.
Strengthen Personal and Business Credit
Maintaining a strong personal and business credit history is crucial. According to a Goldman Sachs Survey, 70% of small business owners confirmed that their personal credit was considered when they applied for a business loan. Moreover, a score above 700 increases one’s chance of securing financing and vice versa. Small business owners should focus on building and maintaining good credit scores. Pay bills on time, reduce outstanding debt, and manage credit responsibly.
Prepare a Solid Business Plan
Creating a comprehensive business plan that outlines the company’s objectives, market analysis, financial projections, and repayment strategies demonstrates professionalism and commitment to lenders. A good business plan typically needs to include a summary of your business, products or services offered, market, and financials.
If you’re unsure of how solid your business plan is, it’s advisable to talk to a business plan expert or a business attorney who will review it and offer feedback on the necessary changes. You also need to be able to explain how you intend to use the money. Demonstrating a grasp of finances and a plan fosters confidence in lenders about our ability to effectively use funds.
Build Relationships With Lenders
Establishing relationships with local lenders or community banks can be beneficial. Engaging in regular communication, attending networking events, and building rapport with lenders can increase the likelihood of loan approval as they gain a better understanding of the business and its potential.
Consider an SBA Loan
An SBA loan is a loan program offered by the US Small Business Administration. The SBA does not directly provide loans to businesses but instead guarantees a portion of the loan amount (usually 85%) issued by approved lenders, such as banks and credit unions. This guarantee reduces the risk for lenders, encouraging them to provide loans to small businesses that may not meet conventional lending requirements. Section 7(A) and 504 are the most popular loan programs because they allow small businesses to borrow up to $5 million.
Explore Alternative Funding Sources
Traditional bank loans are not the only option for small businesses. Exploring alternative financing avenues such as online lenders, angel investors, community development financial institutions (CDFIs), microloans, or government-backed loan programs can offer additional opportunities to secure funding.
You can also consider bad credit loans or short-term loans. Lenders offering bad credit loans do not always consider bad credit when providing financing options. In such instances, they’ll consider cash flow and bank statements to determine eligibility. Short-term loans are usually offered by online lenders and are generally repaid within a year or less.
Optimize Financial Records
Maintaining accurate and up-to-date financial records is essential. Lenders often require detailed financial documentation, including balance sheets, profit and loss statements, and cash flow statements. Every document helps assess your risk level and determine whether loaning you money is a sound decision. Organized and transparent financial records instill confidence in lenders regarding a business’s financial health.
Seek Expert Guidance
Engaging with small business development centers, financial advisors, or industry-specific mentors can provide valuable insights and guidance throughout the loan application process. These experts can help identify suitable financing options and navigate the complexities of securing loans.
Talk to other people who have been through the loan application process and gotten approved. Also, find out what they did to secure financing. Their insight may be able to help you determine aspects of the application you may have missed.
Conclusion
While the process of obtaining small business loans has become more challenging, entrepreneurs can adapt by understanding the reasons behind the increased difficulty and employing strategic approaches. Adapting to the evolving loan landscape and proactively exploring various options will enable entrepreneurs to overcome obstacles and fuel their business growth and success. If you need help starting your business or are looking for invaluable guidance and legal protection as you start your business, look no further than Brenden Kelley Law. Contact us today to schedule a consultation.
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by Brenden | Jun 1, 2023 | Business Law, Small Business
What is Wrongful Termination?
Wrongful termination is a serious issue that small business owners in Ohio need to be aware of. In general, wrongful termination refers to when an employer terminates an employee’s employment in violation of state or federal law.
In Ohio, wrongful termination can occur in a variety of ways. For example, it can occur when an employer terminates an employee due to their race, gender, age, or disability. It can also occur when an employer terminates an employee in retaliation for reporting discrimination or harassment, or for taking time off for a protected reason (such as pregnancy or military service).
Illegality of Wrongful Termination
One of the most important things that small business owners in Ohio need to know about wrongful termination is that it is illegal. Employers are prohibited from terminating employees for discriminatory reasons, and they are also prohibited from retaliating against employees who report discrimination or harassment.
Taking Legal Action…
Another important thing to know is that employees who have been wrongfully terminated have the right to take legal action against their former employer. This can include filing a complaint with the Equal Employment Opportunity Commission (EEOC) or filing a lawsuit in state or federal court.
How to Avoid Wrongful Termination
In order to avoid wrongful termination claims, small business owners in Ohio should be aware of the state and federal laws that protect employees from discrimination and retaliation. They should also have policies and procedures in place to address discrimination and harassment, and they should train their managers and supervisors on how to handle these issues.
Additionally, small business owners should have clear and consistent procedures for terminating employees. This can include providing employees with clear performance standards, giving them the opportunity to improve their performance, and documenting any issues that lead to termination.
Another important thing to know is that small business owners can be held liable for the wrongful termination of an employee if they are found to be responsible for it. This can include both financial damages (such as lost wages and benefits) and non-financial damages (such as emotional distress).
Final thoughts…
In conclusion, wrongful termination is a serious issue that small business owners in Ohio need to be aware of. To avoid wrongful termination claims, they should be familiar with state and federal laws that protect employees from discrimination and retaliation, they should have policies and procedures in place to address discrimination and harassment, they should train their managers and supervisors on how to handle these issues, and they should have clear and consistent procedures for terminating employees. Contact the team at Brenden Kelly Law to learn more about how to protect your business from wrongful termination lawsuits.
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by Brenden | May 28, 2023 | Business Law, Small Business
As a small business owner in Cleveland, Ohio, you will encounter several legal situations out of your depth. Luckily, you can elicit the advice and services of a lawyer before the situation gets out of hand. Seeking professional help in the nick of time turns stressful and overwhelming legal issues into salvageable problems. This article highlights three instances when you should call a lawyer.
1. Employee Issues
Several legal issues can arise as your business grows and you begin to hire employees. These may include discrimination or harassment claims, wage and hour disputes, and wrongful termination lawsuits.
Additionally, a knowledgeable attorney can help you navigate these legal challenges and ensure your business complies with state and federal employment laws. They can also help you draft employment contracts, develop employee handbooks, and advise you on best practices for managing your workforce.
2. Contract Disputes
Contracts are essential to running a business, and disputes may arise when one party doesn’t uphold their end of the agreement. These disputes may involve clients, vendors, or other business partners.
In these situations, having a skilled attorney by your side is important to help you navigate the legal complexities therein. They can help you know your legal rights and obligations, negotiate a resolution, or represent you in court if necessary.
3. Intellectual Property Issues
Protecting your intellectual property is essential to the success of your business. Whether it’s trademarks, patents, or copyrights, intellectual property is a valuable asset that differentiates your brand from rival businesses.
An experienced attorney can help you register your trademarks and patents, draft licensing agreements, and represent you in court if your intellectual property rights are infringed upon.
As a small business owner, legal issues are a reality that you may have to face at some point. Knowing when to call a lawyer and how to choose the right one in Cleveland, Ohio, can help protect your business and navigate these challenges with confidence. Contact the team at Brenden Kelley Law today to help protect you and your business. Call us at 216-644-3359.
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by Brenden | May 18, 2023 | Business Law, Small Business
For small business owners, negotiation is essential. Whether you’re negotiating with suppliers, customers, or employees, being able to negotiate effectively can save you time, money, and headaches.
But negotiation can be tricky. It’s easy to get caught up in the moment and make a decision that you’ll regret later. That’s why having a plan and knowing what you’re doing is important.
The Art of Negotiation: Why It Matters for Small Businesses
If you’re a small business owner, developing your negotiation skills is important. By following the tips listed below, small business owners can improve their negotiation skills and get the best possible outcome for their business.
First here are some of the reasons why negotiation is so important for small businesses:
- It can help you get a better deal. Whether you’re negotiating with suppliers, customers, or employees, being able to negotiate effectively can help you get a better deal. This could also mean getting a lower price on supplies, a higher price for your products or services, or better terms for your employees.
- It can help you build relationships. Negotiation is all about building relationships. When you negotiate effectively, you’re showing the other party that you’re respectful, trustworthy, and fair. This can lead to better relationships, which can be beneficial for your business in the long run.
- It can help you avoid conflict. When you negotiate effectively, you’re more likely to reach an agreement that works for everyone involved. This can also help you avoid conflict, which can save you time, money, and stress.
Here are some additional tips for small business owners who want to improve their negotiation skills:
- Be prepared. Do your research and know what you’re willing to negotiate on.
- Be flexible. Don’t be afraid to compromise.
- Be respectful. Even if you don’t agree with the other party, be respectful of their position.
- Be patient. Negotiation takes time. Don’t expect to get everything you want right away.
- Follow up. Once you’ve reached an agreement, be sure to follow up and make sure that it’s being implemented.
Preparing for Success: Research and Planning
Success doesn’t happen overnight. It takes hard work, dedication, and a little bit of luck. But one of the most important things you can do to increase your chances of success is to prepare. And one of the best ways to prepare is to research and plan.
Research
The first step to preparing for success is to research your chosen field. Learn as much as you can about the industry, the competition, and the latest trends. The more you know, the better equipped you’ll be to make informed decisions and take advantage of opportunities.
In addition, there are many different ways to research your field. You can read books and articles, attend industry events, and network with professionals. The more sources you use, the more well-rounded your understanding will be.
Planning
Once you’ve done your research, it’s time to start planning. This means setting goals, developing strategies, and creating a timeline. Your plan should be specific, measurable, achievable, relevant, and time-bound.
It’s also important to be flexible with your plan. Things don’t always go according to plan, so you need to be prepared to adjust your course as needed.
Effective Communication: Listening, Assertiveness, and Persuasion
Communication is one of the most important skills small business owners can have. It’s how we share our thoughts, feelings, and ideas with others. It’s how we build relationships, solve problems, and achieve our goals.
There are three key elements to effective communication: listening, assertiveness, and persuasion.
Listening
Listening is often the most overlooked part of communication. But it’s essential if we want to truly understand what others are saying. When we listen, we’re not just hearing the words that are being spoken. We’re also paying attention to the speaker’s body language, tone of voice, and facial expressions. This helps us to understand the speaker’s meaning and intent.
There are a few things small business owners can do to improve their listening skills:
- Make eye contact. This shows the speaker that we’re paying attention.
- Avoid distractions. Turn off your phone, close your laptop, and focus on the speaker.
- Ask questions. This shows the speaker that we’re interested in what they have to say.
- Summarize what you’ve heard. This helps to ensure that you’ve understood the speaker correctly.
Assertiveness
Assertiveness is the ability to communicate our thoughts, feelings, and needs in a direct, honest, and respectful way. It’s about standing up for ourselves without being aggressive or passive.
There are a few things small business owners can do to improve their assertiveness skills:
- Be clear and direct. Don’t beat around the bush. Say what you mean clearly and concisely.
- Be respectful. Even if you disagree with someone, you can still be respectful of their opinion.
- Be assertive, not aggressive. There’s a difference between being assertive and being aggressive. Assertiveness is about standing up for yourself, while aggression is about putting others down.
- Be willing to compromise. Sometimes, it’s not possible to get everything we want. In these cases, it’s important to be willing to compromise.
Persuasion
Persuasion is the ability to influence others to think or act in a certain way. It’s about getting people to see things our way.
There are a few things small business owners can do to improve their persuasion skills:
- Be clear about our goals. What do we want to achieve? Once we know our goals, we can start to develop a strategy to achieve them.
- Understand our audience. What are their needs and interests? What motivates them? The better we understand our audience, the more likely we are to persuade them.
- Build rapport. People are more likely to be persuaded by someone they like and trust. So, it’s important to build rapport with our audience.
- Use logic and evidence. People are more likely to be persuaded by arguments that are based on logic and evidence.
- Be persuasive, not pushy. There’s a difference between being persuasive and being pushy. Persuasion is about getting people to see things our way while pushing is about forcing people to do what they want.
By developing our listening, assertiveness, and persuasion skills, we can improve our communication skills and achieve our goals.
Overcoming Obstacles: Handling Difficult Negotiation Situations
Negotiation is a complex process that requires a variety of skills and strategies. It can be challenging, even for experienced negotiators, to handle difficult negotiation situations. However, there are several things that small business owners can do to increase their chances of success.
Here are some tips for overcoming obstacles in negotiation:
The more prepared you are, the more confident you will be in the negotiation. Do your research, know your BATNA (best alternative to a negotiated agreement), and be clear on your goals.
It’s easy to get emotional in a negotiation, but it’s important to stay calm and collected. If you get angry or upset, it will only make the situation worse.
Even if you don’t agree with the other party, it’s important to be respectful of them. Remember, you’re trying to reach an agreement, not win a battle.
Negotiation takes time. Don’t expect to reach an agreement right away. Be patient and persistent, and you’ll eventually reach an agreement that works for everyone.
If you’re feeling overwhelmed or frustrated, take a break from the negotiation. This will give you a chance to clear your head and come back to the negotiation with a fresh perspective.
If you’re not getting what you want and the negotiation is going nowhere, it’s okay to walk away. There’s no point in wasting your time on a negotiation that’s not going to be productive.
If you’re struggling to handle a difficult negotiation situation, don’t be afraid to get help from a mediator or other professional. They can help you to navigate the negotiation process and reach a successful outcome.
Closing the Deal: Finalizing Agreements and Building Lasting Relationships
It can be challenging, even for experienced negotiators, to close the deal and finalize an agreement. However, there are several things that you can do to increase your chances of success.
Here are some tips for closing the deal:
The more prepared you are, the more confident you will be in the negotiation. Do your research, know your BATNA (best alternative to a negotiated agreement), and be clear on your goals.
People are more likely to do business with people they like and trust. So, it’s important to build rapport with the other party. This can also be done by being friendly, respectful, and genuine.
- Create a Sense of Urgency
If the other party feels like they’re losing out on a good opportunity, they’re more likely to make a deal. This can be done by creating a sense of urgency, such as by telling them that the offer is only good for a limited time.
Don’t be afraid to compromise. Negotiation is all about finding a middle ground that works for both parties.
Negotiation takes time. Don’t expect to reach an agreement right away. Be patient and persistent, and you’ll eventually reach an agreement that works for everyone.
Once you’ve reached an agreement, it’s important to summarize it in writing. This will help to ensure that everyone is on the same page and that there are no misunderstandings.
- Get Everything in Writing
Once you’ve summarized the agreement, it’s important to get everything in writing. This will create a legally binding contract that will protect both parties.
Once you’ve reached an agreement, it’s important to follow up with the other party. This will help to ensure that the agreement is implemented as agreed.
In addition to the above tips, it is also important to build lasting relationships with the people you negotiate with. This can be done by being honest, transparent, and respectful throughout the negotiation process. By building relationships, you can increase the chances of future success in negotiations.
If you need help with the negotiation process or want more information, please call Brenden Kelley Law at 216-644-3359 so that we can assist you.
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by Brenden | May 11, 2023 | Business Law, Small Business
As a small business owner, there are many legal considerations that you will need to be aware of in order to protect your business and your personal assets. Here are the top 5 tips that a lawyer can give to a new small business owner:
5 Tips for Small Business Owners:
- Choose the right business structure: The type of business structure that you choose will have a significant impact on not only on the legal aspects of your business, but also the financial. There are several types of business structures to choose from, including sole proprietorship, partnership, limited liability company (LLC), and corporation. Each type of structure has its own advantages and disadvantages, so it is important to consult with a lawyer to determine which structure is best for your business.
- Understand your obligations under the law: As a small business owner, you will have a number of legal obligations that you need to be aware of, such as compliance with labor laws, taxes, and other regulations. It is important to consult with a lawyer to ensure that you understand your obligations under the law and that you are in compliance with all relevant regulations.
- Protect your intellectual property: Small business owners often have valuable intellectual property assets that need to be protected, such as trademarks, patents, and copyrights. A lawyer can help you to understand the different types of intellectual property and how to protect them, as well as how to register your intellectual property so that it is legally recognized.
- Create a strong contract: Contracts are an essential part of any business, and it is important to have a lawyer review all of your contracts to ensure that they are legally binding and enforceable. A lawyer can also help you to understand the terms and conditions of your contracts, and can help you to negotiate any disputes that may arise.
- Have an exit strategy: Starting a small business is a significant investment of time and money, so it is important to have a plan for exiting the business if things do not go as planned. A lawyer can help you to develop an exit strategy that will help you to protect your assets and your business in the event that you need to close or sell your business.
Final thoughts…
In conclusion, starting a small business can be a challenging and daunting task, but with the right legal advice, you can protect your business and your personal assets. By following these top 5 tips, you can ensure that your small business is legally compliant and that you are well-prepared for any legal challenges that may arise. If you are thinking of starting a small business, it is important to consult with a lawyer who can help you to navigate the legal landscape and to ensure that your business is successful. Contact the Brenden Kelley Law team at 216-644-3359 today.
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