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Business Laws That Need To Be Known Before Starting A Business

It is essential to know about business laws before starting a business, as it will help you operate your business without hindrances or any trouble. It is better to seek the expert guidance of an accountant and an attorney to learn about the latest business laws that will affect your business.

Business Laws You Need To Know Before Starting a Business:

Business structure laws: There are different laws for different business entities. So make sure you learn about the business laws that govern the kind of business entity that you choose to start, Corporation, if its a C, S or closed Corporation, or an LLC or LLP, Sole proprietorship etc. These are very important business laws you need to know before starting a business.

Zoning Laws:

It is essential to know about zoning laws, as certain zones are restricted. It deals with the kind or type of business allowed in certain areas, how the land surrounding a business is used, signboards advertisements, parking etc.

Licensing Laws:

In order to operate a business certain licenses are required and these are some important business laws you need to know before starting a business. If a business operates without these licenses, it may be illegal and the business may be dissolved or forced to close.

Trademark and Patent Laws:

These are laws that deal with ownership; intellectual property rights, inventions etc. are necessary to protect the business.

Employment Laws:

These are laws regarding the hiring and firing of employees, their rights, compensation, safety and work place discrimination and child labor laws, overtime pay structure, disability laws and unemployment laws etc.

Tax Laws:

This section deals with filing of tax returns and depends on the kind of business entity and the State the business operates in, sales tax, franchise tax, income tax and other state and federal tax requirements of a business these are very important business laws you need to know before starting a business.

Environmental Laws:

This law is enforced for the discharge of hazardous waste and recycling laws pertaining to the business.

Health Department Permits:
Is necessary if your business deal with food products to get permits to operate your business.

Fire Department Permits, Air and Water Pollution Control Permits: There are certain laws that certain kinds of business entities have to get permits from these departments to operate.

These are just a few basic business laws you need to know before starting a Business. It is necessary to take precaution that you are not violating any law by operating your business and that all the necessary permits and licenses are obtained from the appropriate authority.
There are firms that offer their services and products to help make the process of starting and running a business very simple and easy.

Why You Need a Business Plan for Your Cleaning Company

A business plan is an important document that cleaning companies of all sizes should take the time to prepare before signing on that first account. By sitting down to write a business plan you take the time to look at your new business in an objective and critical manner. Once completed, a business plan will give you a path to follow.

Your business plan will show how your cleaning business is organized, it will list the competitors in your service area, and how you will compete against them. It will also list the services your company will provide, your management methods, how you will market your company, how your company keeps its financial records, and your goals for the future.

Taking the time to write a business plan helps to focus your ideas and increases your chance for success and growth. A finished plan is not only a communication tool for your business, but it is also a document required by most financial institutions if you are applying for a loan to get your cleaning business up and running.

Overall, a business plan will explain your niche, the cleaning services you offer, how you will find your potential customers, key personnel, and plans for growing your business. Your plan should also contain your marketing plan, an analysis of your competitors, and potential sales revenues.

It’s not difficult to write a business plan for your cleaning company. It will take time, research and a quiet place to sit down and bring all the pieces together. Write your business plan in a style that is not only readable, but enthusiastic. This will show potential lenders that you not only know what it takes to run a successful business, but that you are excited about what you are doing. Keep your plan upbeat and positive, but don’t stretch the facts and underestimate the time that it will take for your cleaning business to become profitable.

A completed business plan for a small company may run between 15-30 pages. Organize your plan into the following sections:

1. Introduction. This will include your cover page, executive summary, and table of contents. Your cover page should have all the relevant information about your business: name, location, owners, and the date the plan was prepared. Your executive summary will present a summary of the entire plan, including information about your company, your overall objectives, and your key personnel and their strengths.

2. Business Description. This will be more in-depth information about your business; the products and services you are selling, your service area, your potential clients, background information of key personnel, the unique features your cleaning company has to offer, and a timetable.

3. Business Organization. This section covers the legal structure of your business, how you will manage the business, how many employees you’ll need, and insurance and security issues.

4. Marketing. No business can be successful if people do not realize you exist. A marketing plan will help you to focus on the steps you need to take to find and reach your target audience.

5. Financial Documents. Financial documents are the records used to project income and cash flow. Accurate financial records help to set the pace of your business. Include an income statement, cash flow statement, start up expenses, and projected balance sheet. Show projections for one year, three years and five years.

6. Support Materials. Include resumes of the owner(s) and key personnel, letters of reference, sample contracts, any legal documents about your business, and sample collateral materials.

Do not overlook the value of a business plan. Sitting down and writing the plan makes you look at all the pieces you’ll need to run a successful cleaning business. It forces you to look at the competition as well as your own strengths and weaknesses. Taking the time to plan before you open the doors to your new cleaning business can save you time, money and headaches after your business is up and running. And, looking at your business objectively before you take the leap and sign up that first account, will make your cleaning business more focused and more profitable!

How To Insure A Home Business

Insuring a home business is in now way less important than insuring a big corporate. However, there are many differences when you go to insure a home business and a corporate business. You can get best deal in home business insurance, with a systematic approach No matter what kind of business you are running, insurance is necessary for every business so that you do not have to regret in case of any unforeseen occurrence.

How to Start?

To insure a home business, first of all decide the additional insurance coverage required for a home based business that is not covered otherwise. For example, most of the homeowners’ policies cover the risk of only up to $2500. This is a very small amount considering the risk associated with home business properties. Furthermore, you have to insure for lost income and liabilities. Contact the local office of chamber of commerce or any other organization for self-employment and enquire about the available insurance programs. Also, take advice of our present insurance company from whom you have bought the rental or homeowner insurance policy. It can guide you regarding the additions and riders in insuring home office property.

Insurance Cover for Business Interruption:

While insuring a home business, also gather information regarding the business interruption policies. In this insurance, the company reimburses you the amount, in case of sudden obstructions in day-to-day business operations. Different companies offer different options with varying price tags, By putting some extra effort in shopping around, you may end up in clinching best possible deal.

There are certain special policies also for particular kind of businesses. For example, a professional should have professional liability insurance. Similarly, those businesses, which deal in food products or homemade personal care products, may need some special policies. Varying with the kind of your business and the insurance company, you have basically three options before you to insure a home business.

A Quick Look at All the Three Options:

First is homeowner’s policy endorsement. This is simply just endorsing your current homeowner’s policy. By paying only $25, you can double the risk coverage for business equipments. A liability endorsement is also available for homeowner’s policy. However, insurance companies provide it only for those businesses, which have limited number of visitors. Second option is in-home business policy. The area of coverage in this policy is much wider than the first one. The third option is business owners’ policy. This policy is designed for the businesses that perform business activities from two or locations.