America’s SBDC Blog

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Legal Myths That Can Cost You A Fortune

October 23, 2012

Myths about the law abound. They range from age-old lore, like “possession is nine-tenths of the law,” to mistakes about intellectual property rights. When you fall into the trap of letting these fables guide your decisions, you can get your business into trouble. So let’s dispel some of these legal myths.

Myth 1: Hey, I own that intellectual property. Misunderstandings about intellectual property ownership are rampant. Many businesspeople think if they register a new business with their home state, they automatically obtain trademark registration of their business’ name. No such luck. The trademark registration process is a completely independent process, and you don’t get any trademark registration rights just from setting up a new company.

Similarly, when businesses hire independent contractors to work on new ideas and inventions, companies often assume that they own the intellectual property created by the contractor. Wrong again. Unless you have a special agreement in place assigning the IP rights to your business, that contractor remains the owner of any copyright or patent associated with his or her work. (more…)

Hedging Against Business Debt

October 23, 2012

There is one problem that threatens all businesses: debt. In 2010, businesses nationwide placed $150 billion worth of debt with collection agencies. To keep financially fit and withstand economic storms, a proactive approach to business debt management can hedge against accumulation of high debt that can often hamper growth and potentially lead to bankruptcy.

Knowledge Is Power

Knowing your company’s commercial credit score is an easy way to keep your business financially healthy. Get your credit score at least twice a year to stay on top of credit reporting and spending habits. Among small businesses, credit cards are the second most commonly used financial product, only second to checking accounts, according to a “Report to the Congress on the Use of Credit Cards by Small Businesses and the Credit Card Market for Small Businesses in May 2010.” With businesses today so reliant on credit cards, maintaining a high credit score can help your business better qualify for new credit. (more…)

The Business Buying Process in 6 Steps

October 22, 2012

According to a recent buyer survey, 60% of online business buyers reported that they “Understood the buying process”, but many of our conversations with SBDC counselors paint a different picture. Our workshop at the ASBDC conference aimed to address the complexities of the buying process and shed insight into buyer expectations to better prepare SBDC centers as they intake aspiring entrepreneurs.

Read our 6 steps to buying a small business that were presented at the conference, and click here , or any of the following links to download our Buyer Tools referenced below.

1. Determine Readiness to Purchase

Are your clients prepared to take on the task of running a business? Consider your client’s income, lifestyle, investment, and risk profile to see if they’re suited for the task. (more…)

Protect Your Bargains

October 19, 2012

What to do when your partner won’t honor a contract

Every day in the business world, companies sign contracts, honor their part of the bargain and then discover that the other side isn’t living up to its end of deal. Most businesspeople enter into agreements assuming that the other party has the same intention and ability to honor the contract.

All too often, you learn – the hard way – that integrity and performance is a one-way street. But you can protect your bargains.

Due diligence

You should know with whom you’re doing business. Long-standing relationships can help, but they are not foolproof. One client just discovered that he had been doing business for a few years with someone who was recently indicted for serious crimes. (more…)

Three Questions Worth Considering Before Opening an International Location

October 18, 2012

With 95 percent of the world’s consumers located outside of the United States, expanding your operations outside our borders can be a smart strategy for your business. Can being the operative word.

Your research may reveal a sizable market for your product or service in a foreign country. But before you open your doors in a different country, see how well you can answer these make-or-break questions.

1. Is your local business strong?

Most small business experts recommend achieving success at the local level before shooting for international stars. If you’re not already in business, you might be tempted to start from the ground up in a country with cheaper labor and fewer regulations. (more…)