2006-07-12 18:43:50 · 5 answers · asked by hmonjurul 1 in Business & Finance ➔ Small Business
The prospect is pretty obvious. You get to be your own boss, doing something you (presumabley) love, and you make a profit.
The problems, however are numerous. In addition to the up-front financial burden, there are legal and admistrative issues.
Off the bat, there is accounting, payroll, taxes, and such. Usually a good CPA or Finance advisor can steer you in the right direction.
Copyright and Trademark issues are often common. Even if you are sure that your product is unique, and that you hold all the patents, there might still be challenges. Most of these challenges are nothing more than extortion, as people view it as cheaper to pay off these troublemakers than fight the costly legal battle. Just the name of your business is enough to draw unwanted attention from some of the bigger conglomerates. Consider the slew of businesses who had names contiaining "star" or "bucks" who often found themselves in legal action with you-know-who.
Insurance and Safety issues are always a concern. Injuries to employees, to customers, even to passers-by will all need to be insured against. And that does not come cheap, as these insurance companies will also have investigations into most of these incidents.
Transportation is now coming to the fore. Gas prices, postal and shipping rates, even certified couriers if you are a local opperation will all have to be taken into account.
Technologies, including e-commerce is becoming simpler, but that does not mean that it will pose a problem as well. Fraud is always a primay concern here, both from Credit Card/ID, and from customer claims. Additionally, fraudulent companies will seek to manipulate your business to extort and defraud you. I recently had to report a company in Canada with a PO box in New York who ran a telemarket scam, which claimed that an unauthorized employee claimed to approve the purchase of web-advertising at a rate of $450 a month, and we are a franchise of a national chain, with no need of such a service.
Not to scare you, but knowledge is power. The more you know, the better you can prevent such problems should you decide to start your business. Hope I helped.
2006-07-12 19:00:58 · answer #1 · answered by Jim T 6 · 0⤊ 0⤋
Compared to offline businesses, the investment required to start an online business is minimal. A popular way of earning money on the internet is by providing information and services. This can be monetised by advertising or charging a subscription. You can also make money online by selling products on auction websites like eBay or through your own website. More information available at http://tinyurl.com/syw6m
2006-07-18 07:14:23 · answer #2 · answered by lalraniusha 3 · 0⤊ 0⤋
The main problem is you use your own money to fund your business (unless you are somehow able to get a loan) and you are completely liable for anything that happens related to the business. The main advantage is you are the boss and make all decisions...
2006-07-12 18:50:03 · answer #3 · answered by IDR 2 · 0⤊ 0⤋
the main diadvantage of small businesses is limited liability. if the business is bankrupt, the owner is liable to pay the creditors by selling his personal assets.
2006-07-12 18:56:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
this article has some great tips on small business and marketing etc. hope it helps you
2006-07-12 19:11:51 · answer #5 · answered by yumm 3 · 0⤊ 0⤋