Perspectives
Small Business Success Guide
Starting and running a small business comes with many challenges, but by following key best practices, you can set yourself up for success and minimize legal and financial risks. This guide provides actionable insights to help small business owners and aspiring entrepreneurs navigate common pitfalls and build a strong foundation for growth.
Register Trademarks and Copyrights
Why it Matters: Your brand name, logo, and creative works define your business identity. Protecting these assets prevents others from using them without your permission.
Action Steps:
- Conduct a trademark search to ensure your business name is available
- File for trademark protection with the U.S. Patent and Trademark Office
- Register copyrights for original content, such as websites, marketing materials, and product designs
Draft Strong Contracts
Why it Matters: Clear, legally sound contracts reduce disputes and provide protection in case of disagreements with employees, vendors, or clients.
Action Steps:
- Work with an attorney to draft customized agreements
- Ensure contracts cover key terms like payment schedules, deliverables, and termination clauses
- Regularly review and update contracts as your business evolves
Comply with Employment Laws
Why it Matters: Failing to comply with wage, hour and anti-discrimination laws can lead to lawsuits and penalties.
Action Steps:
- Stay informed on federal, state, and local labor laws
- Establish clear policies on wages, overtime, and employee classification
- Provide anti-discrimination and harassment training for employees
Get Proper Business Insurance
Why it Matters: Insurance protects your business from financial losses due to accidents, lawsuits, and unforseen events.
Action Steps:
- Obtain general liability, professional liability, and worker’s compensation insurance
- Review coverage annually to ensure it meets your business needs
- Work with an insurance expert to identify additional risks specific to your industry
Stay Compliant with Tax Laws
Why it Matters: Failure to meet tax obligations can result in penalties and audits.
Action Steps:
- Work with a CPA to ensure compliance with federal, state, and local tax requirements
- Keep accurate financial records to streamline tax filing
- Plan for estimated tax payments to avoid year-end surprises
Use a Compliance Partner
Why it Matters: Regulations change frequently, and staying compliant can be complex.
Action Steps:
- Partner with a law firm or compliance expert to stay ahead of regulatory changes
- Schedule regular compliance audits
- Implement policies and training to ensure ongoing adherence to laws
Separate Business and Personal Finances
Why it Matters: Mixing business and personal finances can create tax issues and legal liability.
Action Steps:
- Operate separate business bank accounts and credit lines
- Track your business expenses separately for accurate financial reporting
- Pay yourself a salary rather than withdrawing money directly from business accounts
Have Clear Payment Terms
Why it Matters: Updaid invoices can hurt cash flow and profitability.
Action Steps:
- Require upfront deposits for services or large orders
- Include clear payment terms in contracts
- Implement late payment policies and enforce them consistently
Create an Employee Handbook
Why it Matters: An employee handbook sets clear workplace policies, reducing confusion and disputes.
Action Steps:
- Outline expectations, workplace rules, and disciplinary procedures
- Include policies on harassment, benefits and time off
- Have employees sign an acknowledgment of receipt
Monitor Cash Flow and Financial Health
Why it Matters: Poor cash flow management can lead to business failure.
Action Steps:
- Regularly review financial statements
- Track income and expenses to detect inefficiencies
- Work with a financial professional to create a budget and forecast future financial needs
Work with a Trusted Law Firm
Why it Matters: Proactive legal counsel can help prevent costly issues before they arise.
Action Steps:
- Establish a relationship with a business attorney early on
- Consult legal counsel before signing
- Stay informed about industry-specific legal requirements
By implementing these best practices, small business owners can mitigate risk, improve financial stability, and position their businesses for long-term success. Proactive planning and professional guidance are key to navigating the complexities of entrepreneurship. To learn more about the strategic partnership Wagner, Falconer & Judd offers business clients, reach out today!