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Small businessA small business may be defined as a business with a small number of employees—"small" being defined by the type of business. It is normally a private company, a partnership, or a single-person operation.
Small businesses are common in many countries, depending on the economic system in operation. Typical examples include: small shops, hairdressers, solicitors, lawyers, accountants, restaurants, guest houses, photographers.
Problems faced by small businesses
The first problem that most small business owners encounter is under capitalization.
No business should be started unless the owner has access to at least a sum of money equal to the projected revenue for the first year of business. If he feels that he will do $100,000 business in the first year then he should have this amount available.
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 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.
A business should not be financed with credit cards because the interest rate will cause too much strain on the finances. Many owners seek a bank loan in the name of their business but the bank will insist on the personal guarantee of the business owner.
A good accountant is a requirement. A retired person can usually be located for part-time work. There is a wide gulf between an accounant and a bookkeeper. An accountant can do everything from initial entry right through tax returns and financial statements.
In the United States, the business owner should be vigilant to not fall behind on required deposits of state and federal taxes. If the owner cannot pay these taxes on time then there is something wrong with his revenue stream. He should consider quitting while ahead and close the business.
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LiveWIRE
Help and advice on starting your own business, with essential business kit and a competition; sponsored by Shell.
http://www.shell-livewire.org/
smallbusiness|europe
Organisation seeking to maximise the interests of UK small and medium sized enterprises (SMEs) at the European level by strengthening the dialogue between UK SMEs and the decision-makers in Brussels.
http://www.smallbusinesseurope.org/
Better Business
Resources for microbusinesses, entrepreneurs and freelancers.
http://www.better-business.co.uk/
Federation of Small Businesses
Protecting, promoting, and furthering the interests of the self-employed and small business sector.
http://www.fsb.org.uk/
Small Business Guide
SME portal sponsored by Lloyds TSB. News, information and directory.
http://www.smallbusiness.co.uk
The Institute of Business Advisers
Non-profit making institute which specialises in helping small firms. Information, branch lists and details of services on offer.
http://www.iba.org.uk/
WorkOnLine
Job and professional listings and other resource for the telecommuting community, with service for matching employers with employees.
http://telecommute.hypermart.net/
smarterwork.com
Service facilitating virtual teams by matching businesses with freelance contractors and offering virtual office services, a secure on-line payment platform and performance guarantees.
http://www.smarterwork.com/
Business Bureau (UK)
Useful advice and information on starting up and running a small business. Articles, guides and links.
http://www.businessbureau-uk.co.uk/
Chamber Business Enterprises
Offering business support, advice, membership, and other services including networking, trade, worldwide supplier sourcing and access to export and business information.
http://www.tvc.org.uk/
The Big Small Business Initiative
Backed by major companies, offering helplines, factsheets, discounts, advice and consultancy on all aspects of setting up and running a small business.
http://www.bsbi.co.uk
Stridepool
Online diary service and directory of graphic and web designers, copywriters, film/video editors, animators, art workers, and other creative freelancers.
http://www.stridepool.com/
Microsoft bCentral
Miscrosoft's small business resources portal, covering technology, marketing, finance, administration and legal issues.
http://www.bcentral.co.uk
Growing Business Awards
An awards scheme for start up small businesses in the UK (those with between one and 500 employees).
http://www.growingbusinessawards.co.uk
Business Europe
A source for news, information and best-practice advice for UK small businesses
http://www.businesseurope.com
Business Resource World
A range of business resources, including: plans, manuals, standards, documentation and legislative aids.
http://www.documentationworld.com
Legal Agreements for Small Business
Draft legal agreements, pre-written contracts, and templates for small businesses in the UK.
http://www.legalagreements.net
The Outsourcing Index
Outsorcing information and materials geared towards small business
http://www.outsourcingindex.com
The Small Business Service
Offers information on a range of services provided by the DTI specifically to help small businesses.
http://www.sbs.gov.uk/home/
The Small Business Community Forums
A vendor independent interactive portal dedicated exclusively to small business.
http://www.smallbusinessforums.org
Business Gateway
Provides online advice and information on a wide range of issues for both start up and existing businesses.
http://www.bgateway.com
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