small business

A small business may be defined as a business with a small number of employees. The legal definition of "small" often varies by country and industry, but is generally under 100 employees. These businesses are normally privately owned corporations, partnerships, or sole proprietorships.Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: small storeshops, cosmetologisthairdressers, tradesmantradesmen, solicitors, lawyers, accountants, restaurants, motelguest houses, photographers, small-scale manufacturing etc. The smallest businesses, often located in private homes, are called ''microbusinesses''.

Problems faced by small businesses - Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is undercapitalization. This is often a result of poor planning rather than economic conditions, it is common rule of thumb that the entrepreneur should have access to a sum of money at least equal to the projected revenue for the first year of business in addition to his anticipated expenses. For example if the prospective owner thinks that he will generate $100,000 in revenues in the first year with $150,000 in start-up expenses, then he should have no less than $250,000 available. Failure to provide this level of funding for the company could leave the owner liable for all of the company's debt should he end up in bankruptcy court, under the theory of undercapitalization.In addition to insuring that the business has enough capital, the small business owner must also be mindful of gross margin (sales minus variable costs). To break even, the business must be able to reach a level of sales where the gross margin exceeds fixed costs. When they first start out, many small business owners underprice their products to a point where even at their maximum capacity, it would be impossible to break even. The good news is that cost controls or a price increase can often resolve this problem.In the United States, some of the largest concerns of small business owners are insurance costs (such as liability and health insurancehealth), rising petroleumenergy costs and taxes. In the United Kingdom and Australia, small business owners tend to be more concerned with excessive governmental red tape.

Certification and Trust - Building trust with new customers can be a difficult task for a new and establishing business. Some organizations like the Better Business Bureau and the International Charter now offer Small Business Certification, which certifies the quality of the services and goods you produce and can encourage new and larger customers. These services may require a few hours of work, but a certification may reassure potential customers. However, the most effective way to earn trust is through customer referrals.

Personnel - A good accountant is a requirement. A retired person can usually be located for part-time work. There is a wide gulf between an accountant and a bookkeeper. An accountant can do everything from initial entry right through tax returns and financial statements.

Sources of Funding - There are several sources available for start-up capital. The owner can finance it himself through his savings or an equity loan on his home or other assets. The owner could use financing via a stock issue (although there would be legal problems if it were offered to the general public). A partnership could be formed or perhaps a venture capitalventure capitalist would provide funds if the business venture plans were sound enough. Relatives could also loan money but the owner should realize that if anyone else participates in the venture some elements of control will be lost.Financing a business with credit card debt is usually a poor choice, the interest rate on credit cards is often several times the rate that would be paid on a line of credit or bank loan. Many owners seek a bank loan in the name of their business, however banks will usually insist on a personal guarantee by the business owner. In the United States, the Small Business Administration (SBA) runs several loan programs that may help a small business secure loans. In these programs, the SBA guarantees a portion of the loan to the issuing bank and thus relieves the bank of some of the risk of extending the loan to a small business.

External links -

amiba.net - American Independent Business Alliance

asbanet.org - American Small Business Alliance

nfib.com - National Federation of Independent Business

sba.gov - Small Business Administration

smallbusinessforums.org - Small Business Forum

score.org - SCORE

uspto.gov - USPTO Stopfakes.gov Small Business !ResourcesCategory:Businesspl:S ektor? !MSPzh:中小型 企業

One Source For Small Business Plans, Planning and Consulting.
Your one source for your small business planning needs, including business plans, software, loan packaging, free small business information,and more!
http://www.darcocreations.com/

Solid Oak Consulting, LLC
Helping your acorn business grow into a solid oak. Startup and turnaround help for the owners of small businesses.
http://www.solidoakconsulting.com/

Victoria Jones Strategic Marketing Communications LLC
A marketing consulting firm located in Madison, WI, that helps businesses and non-profits connect their products and services with customers
http://www.vickyjones.com/

Your hosting .co.uk
Uk based hosting web hosting providing affordable web hosting for Shared, adult, business and Reseller hosting and web design
http://yourhosting.co.uk/

Lemonade Stories
Award-winning documentary film which chronicles the impact mothers have in terms of igniting entrepreneurial spirit. Featuring Richard Branson (Virgin); Arthur Blank (Home Depot); Russell Simmons (DefJam); Kay Koplovitz (USA Network); and Tom Scott (Nantucket Nectars), among others.
http://www.lemonadestories.com/

North Country Mall
located in Northern Wisconsin, We are a showcase for crafters and small businesses.
http://www.northwisc.com/

Online Business
Internet marketing information that you can use to make more money in your business
http://www.markeyting.com/

Utah Association of Certified Public Accountancy
Resources for small businesses, minority businesses, accounting students and those considering careers in accouting, taxation, audit and accounting resources, financial literacy and much more.
http://www.uacpa.org/

Unique Graphic Design
CWebArt is a complete webdesign service offering personal graphic and webdesign just as unique as the person or business itself. Free or low cost hosting, domain registration, low cost complete web packages available. You get personal service and a website designed just for you like no other. Each website is created just for the individual or business. We strive for creation, design, perfection!
http://www.cwebart.com/

Web Lite Designs
Website Design, Your VISION becomes REALITY, London Ontario Based International Developers, Small - Large Businesses
http://www.weblitedesigns.com/

Fluid Designs
Custom and Contract Screen Printing & Embroidery Comapny. Fully automated with state of the art equipment. Everything is produced in House. Your One stop shop
http://www.fluiddsn.com/

Barbara Weltman
Information and advice to small-business owners
http://www.barbaraweltman.com/

Australian Wages Information
Australian based website with information on wages, employment, superannuation, taxes and immigration.
http://www.wage.com.au

theSmallTenant.com
Commercial Real Estate. theSmallTenant.com provides a free to search list of available office, retail or industrial space suitable for small businesses. Most spaces are less than 5,000 SF in size.
http://www.thesmalltenant.com/

IMailUK.com - Computer Man in a Van - I.T. Services
Small I.T. Services business based in the Nrth East of Scotland specialising in small business installations, web design and PC repair and sales. We are also a DELL reseller.
http://www.imailuk.com/

The Amanatee Group
Amanatee Business Development and Personal Innovation for Process and Growth.
http://www.amanatee.com

ProjectST
Project management software. Project charter, Issues, Activities, Tasks, Change Requests, Risks, Meetings and Action Items in one easy to use application.
http://www.projectst.com/

SBA: Small Business Administration
Services provided by the U.S. Small Business Administration Offices and Partners.
http://www.sba.gov

Entrepreneur.com
Online version of the print magazine, with articles, resources and online tools, and Question and Answer sections.
http://www.entrepreneur.com/

The Small Business Advisor
Advice and assistance for the entrepreneur, home-based and new business owner.
http://www.isquare.com/

U.S. Business Advisor
A one-stop electronic link to all the information and services government provides for the business community.
http://www.business.gov