Raising a Business from a Puppy
This past weekend, after months of my boys wearing me down, we went to the animal shelter and adopted a puppy. And not just any puppy, but a hound/terrier mix that is estimated to reach 65 pounds at adulthood. After a lifetime of owning tiny dogs (mostly Pomeranians), I knew Charlie would be a new adventure.
As we have been adapting to a puppy-friendly house, I have been thinking about how similar raising a puppy is to growing a business. There are similar challenges, but similar strategies to face them, as well.
Hav
e set rules.
The first thing I did was to set ground rules early on, before the puppy had even set foot in the house. I reminded my sons that he was never to be fed people food, not allowed on the furniture, and that allowing him to roughhouse and "play-bite" was a bad idea.
In a business, it's also easier to practice good habits early on, and to avoid the bad ones. Getting into the practice of having separation of duties and staying on top of bookkeeping is easier when your business is small, and sets you up for success as your company grows.
Protect your assets.
Charlie has a crate he sleeps in and to which he is confined whenever the family isn't home. We have also stressed to the boys the importance of keeping toys and other valuables off the floor and in their rooms, where they are safe from puppy teeth. (I learned the lesson myself, when a laptop cord I'd left next to my desk was chewed through the first day.)
A new business, if not well-protected, can be even more destructive for an owner. Not having the proper insurance or levels of separation can not only be disastrous for the business, but can bankrupt you personally. And since none of those protections can be applied retroactively, it is best to have them early on, before you need them.
Get help from the experts. 
I know a lot about animals, but I also know I can't be an expert in every area. We have a veterinarian to help take care of our pets' health. I may be comfortable giving the dog a bath, but I still prefer to take him to a professional groomer for things like a nail trim. And though we are reinforcing training at home, we already have Charlie signed up for puppy training classes. I don't have the time to provide absolutely everything Charlie could need, and there are experts who can offer those services much more efficiently than I ever could.
Businesses also need a lot of help, and it doesn't make sense for the owners to handle everything. Even if you're planning on doing your books yourself, get an expert to help set-up and train your and your staff. If you wait until your business is large to come up with a bookkeeping solution, you'll have an unmanageable beast on your hands.
5 Things Business Owners Don't Realize They Need
We've all heard, "You don't know what you don't know." This is particularly true in business, where it can be easy to develop tunnel vision and focus on your own expertise at the expense of the company.
Accepting the premise that you don't know what you don't know, we can extrapolate that you can't get what you don't realize you need. Everyone knows they need sales avenues, customers, etc. But there are other business essentials which, though not as well-known, are utterly necessary. Here are five things businesses need (which you might not have thought of yet).
1. General Liability Insurance
It's no wonder that no one likes to think about getting insurance for their business. Buying personal insurance, for your house, car, or health is enough of a hassle. Getting quotes and comparing premiums and benefits for your business? That's just piling on.
However, general liability insurance for your business is an absolute essential. You can hope to never need it (I'm sure you're never planning to get sued) but, in the eventuality that you do, you will be grateful for it. Depending on the nature of your business, Commercial Property Insurance might be a recommendation, as well.
2. Workers' Compensation Coverage
Even more insurance! Laws vary by state but, in North Carolina, you are required to carry Workers' Comp if you have three or more employees, or if you have at least one employee and your business works with radiation. (If your business works with radiation, you'll definitely want those general liability and commercial property insurance policies, as well.)
Many employers try to avoid purchasing workers' compensation policies, but it is not a wise choice. Not carrying coverage opens you up to charges of fraud, huge fines and, in some cases, even jail time.
Now let's move away from insurance and segue into something else that can protect you from being sued by employees or the government...
3. A Good Payroll Provider
Unless your business is large enough for an in-house full-scale accounting department (in which case, we're flattered you're reading our blog), you need to be outsourcing your payroll. Running payroll manually is intensely time-consuming, and very risky. If you do not have a payroll expert on your staff, you are taking a big gamble with your tax withholdings and filings. According to the IRS, 40% or small businesses pay an average of $845 per year for late or incorrect filings or payments. (That's over a third of small businesses.)
Furthermore, outsourced payroll services have become ridiculously inexpensive and painless. We at The Bookkeeper are huge fans of Gusto Payroll, and frequently recommend them to clients. Their customer service is excellent, the interface is user-friendly (even for avowed Luddites), and packages start at less than $40 a month. And Gusto is one of many simple, affordable payroll solutions.
Please, do not take on the headache and risk of penalities associated with payroll, without researching your provider options first.
And while we're on the subject of taxes...
4. Sales & Use Tax
Who has to file sales and use tax? According to the North Carolina Department of Revenue, "Every person engaged in the business of selling tangible personal property at retail, selling certain digital property at retail, renting or leasing taxable tangible personal property in this State, operating a laundry, dry cleaning plant or similar business, or operating a hotel, motel or similar business in this State must register with the Department and obtain a Certificate of Registration. This includes a person who sells tangible personal property and certain digital property, or provides a taxable service at a specialty market, flea market, fair, festival, sporting event, or another event or function."
Needless to say, there are many, many people who should be paying sales tax who aren't. So if you are selling a tangible good, even if it's just from a booth at the fairgrounds on Saturdays, you should be filing sales and use tax. And if you do not know to do so, contact someone who does. If you are caught not paying sales tax, you may be assessed penaltyand interest. The risk is simply not worth it.
Now that we've bummed everyone else by talking about insurance and taxes for four entries, let's move on to what's surely going to be the most controversial item on this list...
5. A Website
In 2016, in order to maintain credibility, your business needs a website. (No, a Facebook page doesn't count, though it's better than no web presence at all.) A website (preferably with a unique, personally-owned URL, and not through a "freebie" site-building service) shows your customers and potential customers that you a legitimate, solid company. Your website is the first place people will go to look for information about your business. Not having any sort of web presence at all can read as very suspicious.
Furthermore, you are doing yourself a huge marketing disservice by not having a website. Web marketing provides the absolute most "bang for your buck" out of any form of advertising. Even if you have a successful business without a website, you could be reaching so many more potential customers and be more available to current customers.
Are there any other little-known business essentials you would add to this list? Let us know, and we'll amend accordingly.