Manage Your Small Business Like Its Big Business

Financial ConsultantsSmall business is big business in the U.S. In fact, your Miami financial consultants found out there are over 30.2 million small businesses in America (fewer than 500 employees). From high-tech start-ups to private medical clinics to boutique design firms, they all contribute to what’s known as the “backbone of America.”

Small businesses employ nearly 60 million people, making up for 47.5% of the country’s total employees.

It’s important to operate your small business as if it were a big time corporation. Aside from identifying your goals, having a business plan, and following a strategy, there are also operational things you can do to improve your odds of turning it into a success. Many new business owners typically focus on purchasing equipment and inventory as well as producing marketing materials. But, depending on the type of company you’re setting up, there may be more to think about.

Business insurance protects your ongoing efforts

Manage Your Small BusinessYour Miami financial consultants suggest you look into a business insurance. It’s important to protect your company, after all you’ve been working so hard to grow your business and remain prosperous. A business insurance will cover you from various types of risks, depending on your needs, gross revenue, number of locations and the like. A business insurance can protect your property such as your physical building, computers, furniture, vehicles and the like.

With a lost income insurance, your policy will also cover property loss due to fire, storm or other natural disaster. If a customer slips and falls when shopping in your store, your business insurance will protect you if you get sued. There are many types of business insurance with workers’ compensation, business property, and errors and omissions being some of the most common. The Miami financial consultants recommend doing dome research online and seeking advise form underwriters.

Get the right certification or licensing.

Get the right certification or licensingMost small businesses need a combination of licenses and permits from both federal and state agencies. There are various requirements and fees depending on the business. For example, if you sell alcoholic beverages, you need a license from the Alcohol and Tobacco Tax Trade Bureau as well as the Local Alcohol Beverage Control Board. If you a have a private jet company, you will need a license from the Federal Aviation Administration.

Typically, states regulate a broader range of activities than the federal government. Auctions, construction, dry cleaning, restaurants and plumbing are usually regulated. The Miami financial consultants remind you to make sure your licenses and permits are always up to date. Keep track and renew them continuously.

Keep your business account separate.

small business accountingIf you open a small business, you need business checking account so that you don’t mix your various sources of money. This separation will make bookkeeping a lot easier, helping you during tax season. It will give you a clear sense of your business expenses and income, as well prove to the IRS that it’s a real small business, not something you occasionally dabble in. The IRS needs you to show a profit three years out of every five years through a federal tax form schedule C.

If you have losses deducted from your income for three consecutive years, the IRS may determine your small business a hobby business which can turn into an audit. A clear, separate bank account for all your business transactions, along with a business credit card, will also come in handy should you have to go through that process.

If you need more advice on how to run your small business and keep it prosperous, contact your Miami financial consultants at 305.868.7620