What other pitfalls or cautions must be considered in small business planning?
Many potential small business owners are too quick to purchase expensive computers for inventory, payroll, word processing or accounting needs of the proposed business. Consider first whose time will be spent on these activities. The cost to the business, in both time and money, would often be far less if these services were contracted for. For many businesses especially those housed in a residential area or a home, zoning and other city regulations must be considered in the business design and operation. The local chamber of commerce is a good source of information on these issues. Many businesses have tax, insurance and/or licensure requirements. A consumer may have to hire an attorney or accountant to help with the initial start up. While partnerships and group ventures are good ways to reduce the cost of a business start up, any agreements and understandings are best put into writing with appropriate legal advice. This is true even when family members are involved in the business r
