Small business is the cornerstone of the American economy. Despite the press coverage that large companies receive for setting new market capitalization highs, or for causing a stir about where they’re locating their new headquarters, small business as a group is the largest employer in the United States. This means that most people rely on small business for their wellbeing and livelihood. As the owner of a small business, your success is their success.

No matter how good a business idea is, the business may fail without proper financial management. Maximizing a company’s finances requires strong analytical and decision-making abilities. To help reduce some of the stress, below are three healthy financial habits that will help any small business owner:

Operating a home-based business can result in reduced stress and lower expenses. By combining your home and office into a single location, you can roll out of bed, make breakfast and a cup of coffee, and then walk across the hall to your office to get on with the day – no more commuting to and from work. If you have a family, a home-based business can mean more time with your kids and significant other. In addition to lower stress and more family time, a home-based business can also provide a financial benefit. By combining your home and your office, you’re eliminating the additional cost of leasing office space. Despite the many benefits, home-based businesses aren’t for everyone. For those who believe they will benefit from a home-based business, this post will provide an overview of what you need to know.

According to Merriam-Webster, an entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise.” Being an entrepreneur means taking financial risk for economic profit, it doesn’t mean building a completely new business. For those with an entrepreneurial spirit who don’t have the latest and greatest idea for an app or new technology, acquiring and improving an existing business is just as entrepreneurial as starting a new company. When buying a business, there are several characteristics that you need to look for, as well as a few red flags.

When valuing a business, there are two primary assets that are considered. These are tangible assets and intangible assets. Tangible assets are physical assets such as real estate, equipment, inventory, etc. Conversely, intangible assets are not physical in nature and include intellectual property, brand recognition, and goodwill. Despite being intangible assets, brand recognition and goodwill are intrinsically tied to the value of a business.

Brand recognition is the value of someone recognizing your brand. A brand may include certain characteristics of the goods, logos, slogans, etc. For example, the Chevrolet badge is commonly referred to as the “bowtie” and carries with it certain preconceptions. Similarly, Ford’s emblem is known as the “blue oval.” For anyone who is a truck enthusiast, they will know that aside from styling differences, they may discount the value of a vehicle based on the brand. The primary issue with brand value is in the name itself – the value of the brand. Identifying what a brand is worth is a mix of psychology, sociology, economics, and field research. Interbrand publishes an annual “Most Valuable Global Brands” list which uses three key elements to create a complex valuation: financial forecasting of the future revenue associated with the brand, the role of the brand as a percentage of overall revenue, and brand strength which includes metrics such as awareness and loyalty.

For 2018, the five most valuable brands are:

1. Apple
2. Google
3. Amazon
4. Microsoft
5. Coca Cola

Finding yourself in a position to sell your business is a monumental achievement. Establishing a business is hard work, and preparing to sell your business is no different. There are many reasons to sell your business: you may be looking to retire, take a less involved role, resolve an ownership dispute, or perhaps your business is now struggling and you are looking for a buyer to try to turn it around. Regardless of the reason that you’re selling, there are some key considerations that you need to be aware of.

Establishing a Strong Team

Selling a small business has many moving parts that will be discussed further below. As a result, it is essential that you establish a strong team to help you through the sale. The three team members that you will want to identify early on are an attorney well-versed in the sale of a company, an appraiser who can accurately value the business, and potentially a broker who will work hard to identify potential buyers. Your choice on these team members, and whether to include all three, will depend upon the complexity of the business and its potential valuation.

The majority of businesses in the United States are small businesses. To understand the impact that small business has, consider the fact that small business generates nearly 60% of all new jobs within the United States. Amazon, Walmart, and other big companies often stand out with their massive revenues and employment numbers, but at the end of the day, the primary drivers behind the economy are small business.

If you have a family business or personal business that you’ve built up, you are likely one of these economic drivers. For many families and individuals, the business becomes an identity. Family businesses in particular are susceptible to acting as an identity for that family. Thus, for many small business owners planning for retirement, the question of what to do with the small business is a major stressor. For a family business, the transfer of control and ownership from one generation to the next can be incredibly complicated and strenuous. If it’s not a family business, then the question is primarily how to effectuate the sale and estate planning repercussions. The following sections will give an overview of general considerations for family-owned businesses and then general concerns relating to the sale of a business.

For many small businesses, getting the sale is just the first step in the process. Many small businesses rely on extending credit to the purchasers in business to business transactions. As a business with many transactions, purchasing on credit from a seller can be ideal as processes are streamlined: purchase as necessary and then making payments within a set period of time. Given the thin cash reserves for many small businesses, having the flexibility to pay at a later date is necessary due to periodic cash flows. All in all, this system of seller-financed credit (the seller not requiring payment at the time of the sale) allows small businesses to flourish.

However, despite the agreement to pay, the purchaser may not always make good on the agreement, and as the seller providing the purchaser’s credit, you may be stuck with attempting to collect on that debt. The failure of the debtor to pay the bill can result from a few possibilities. First, the debtor could have simply forgotten to pay the bill in an administrative oversight. Second, the debtor could be illiquid or have insufficient cash on hand to pay the bill. Third, the debtor could be refusing to pay due to an issue such as nonconformity of goods (the goods received weren’t what they ordered). Finally, the debtor could be refusing to pay in bad faith in hope that you as the creditor will not attempt to collect on the debt, or would be willing to collect at a reduced amount. Regardless of which of the above is the case, you need to act to resolve the outstanding debt.

If you are considering buying a business, you need to ask several questions first. Getting the right information will be integral to determining whether this is a smart business decision for you. It will also help you decide how to best carry on the business after you have purchased it. You should ask the following questions before you commit to buying a company.

1. Do the financials seem sound?

The books are going to be very important if you are considering buying any type of business. As a buyer, you should be asking for bank statements and profit and loss statements. You may also want to see any contracts with employees, suppliers, or lessors. Ongoing deals with advertisers should also be examined.

Looking at the financials for specific product areas or by quarter can also be helpful. Smaller businesses may not have as detailed of records as you would like, but taking a look at what they have can be helpful. If they don’t have any records at all or the records consist of receipts in a shoebox, that can indicate a problem. Tax records may be a helpful place to start if the seller doesn’t have anything else.

Getting tax withholdings right can be extremely daunting. Failure to pay the IRS or state taxing authority the correct amount could end up costing you thousands of dollars in penalties and interest. For many employers, an outright failure to pay could result in personal liability for employment taxes.

Payroll tax withholding covers more than just federal taxes. It also addresses any state tax obligations, local tax requirements, and Federal Insurance Contributions Act (FICA) Taxes. If you, as an employer, do not pay these correctly, you could have both the federal and state taxing authorities upset with you, and your employee may have to pay into the government at the end of the year. You can avoid all of these potential problems by simply ensuring that you are withholding for everything you are supposed to—in the right amount.

As a business owner, you have certain responsibilities that must be fulfilled.While being a sole proprietor gives you more leeway, business owners who use any other business formation must be familiar with fiduciary responsibilities. These obligations extend to corporate officers and even managers in some situations. So, what are fiduciary responsibilities for business owners and corporate officers?

What are Fiduciary Duties?

A fiduciary duty is a legal requirement that applies to anyone who has a relationship of trust with another person or organization. While fiduciary responsibilities extend to more than just the business context, they are often associated with corporations and partnerships.

Very few employers like to discipline employees for misconduct or poor performance. However, it may be necessary to do so to prompt t workers  to fulfill their job duties appropriately or behave in a specific way. Establishing a disciplinary policy long before you need it will clarify your expectations of employees and also help you avoid legal liability for wrongful termination or similar claims. This article is a brief discussion of how to  develop a disciplinary policy that works for your business and your employees.

Identifying Common Problems with Employees

If you already have employees, establishing  a disciplinary policy may be a response to unacceptable conduct you are currently experiencing. While your policy can be designed to  specifically target those unwanted behaviors, common problems your disciplinary policy should address include:

Many businesses have a sign hanging on the wall, often near the cash register, that says something like “We reserve the right to refuse service to anyone.” The reality is not as straightforward as the sign's message.

First, members of legally protected classes cannot ever be denied service based on their membership in their respective class.