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Small Business
FAQs
What is the best business structure?
Am I required to have a Board of Directors?
Do I really need a business plan?
What is the marketing mix?
Do I need an accountant?
How do I build a larger customer base?
How do I hire the best employees?
What kind of office equipment do I need?
Do I need to take my business online?
I need money, where can I find financing?
What is the best business structure?
This depends on what best fits your needs. Are you in business by yourself or with partners? Do you need to structure your business as a sole proprietorship, partnership, limited liability company, or corporation? There is no right answer, so learn about each one, its advantages and disadvantages so you can make an informed decision.
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Am I required to have a Board of Directors?
This depends on the type of business structure. A board of directors is required if the business will be a non-profit organization or a corporation. Even if you don’t have a board of directors, you should select an advisory board to help you in decision-making and generating ideas.
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Do I really need a business plan?
Absolutely, yes. If you go to a lending institution for a loan, it will be required. But even if you don’t need a loan, having a business plan guides you, keeps you on track and allows you to correct problem areas before they become disasters.
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What is the marketing mix?
The marketing mix refers to the “4 Ps,” which are:
Product – the right product for the target market.
Place – all activities involved in getting the item to the target market; manufacturing, packaging and distribution.
Promotion – communication to target market about the merchandise including advertising, sales promotion, direct marketing, selling and public relations.
Price – determination of the price that will best attract buyers and make a profit for the company.
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Do I need an accountant?
Research the benefits and challenges of several choices such as maintaining the books yourself, hiring a bookkeeper, or hiring an accountant to set up and maintain your books. An additional option is to set up a mixed system in which you or a bookkeeper performs the day-to-day activities, while an accountant does the period-end record preparation, reconciliation, payroll taxes, sales tax, state and federal tax.
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How do I build a larger customer base?
First, do you have a marketing plan? Are you financially prepared to grow your business, do you have sufficient product or service capability to deliver an increased demand?
One way to build a bigger customer base is to expand your marketing to a new target audience, or launch an e-commerce web site, or add new products and services or new ways of using your existing products and services. When Arm & Hammer was faced with limited usage for baking soda, they created new ways to use the product and increased their customer base, market share and sales profits. Be creative but be sure there is sufficient market to support your new effort.
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How do I hire the best employees?
Be realistic in assessing your employee needs. What do you need the person to accomplish, how will they contribute to building the business and the bottom line, what kinds of skills are the best match, what education is required and preferred. And don't overlook the importance of personality. In a small business, employees can be much like families so decide carefully who you invite into your business.
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What kind of office equipment do I need?
Your equipment needs will vary depending on your location, number of employees and product or service you sell. However, nearly all businesses need at least one phone line, a computer, word processing, database and financial software, Internet access, printer, scanner, modem, fax machine, copier, answering machine or voice mail, postage meter, and cellular phone and/or pager. Before you buy, comparison shop because prices can vary widely.
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Do I need to take my business online?
Think of online business as an extension of your marketing communication efforts. With the prevalence of the Internet today, you need to have at least a basic web site with promotional information about your company, contact information and product or service information. If you have a product that can be sold, research e-business and decide if it is the direction you want to take your business. Web sites allow you to sell globally so consider all the advantages and disadvantages for your particular business. You may expand your market but do you have adequate resources to respond to the increased demand? As with all marketing tasks, consider how the Internet will contribute to your company's objectives and sales goals.
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I need money, where can I find financing?
All businesses need money to grow and endure. Let's assume you have already used your personal money and exhausted all possibilities with friends and relatives. If you are looking for outside financial backing, contact Jefferson Bank or your bank first. You will also want to consider other commercial enterprises, venture capitalists and small business administration loans. While we do not specifically endorse any of these sites, there are many places online such as www.moneysearch.com, www.americanbusiness.com, and www.commercialfunding.com that offer information and resources.
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