Every business owner knows that the economy fluctuates. No matter what industry you are in, you can expect times of great profit and periods that are sparse. In some cases, the latter will necessitate action. You may need to cut costs in order to maintain your business, but downsizing is often easier said than done. There are several legal pitfalls, in fact, that can make it a liability and therefore potentially more expensive than it is worth. The following are important risks to avoid when you are reducing your workforce.
Start-up companies often have variety of capital needs, including investments in equipment, software and office space. Would-be entrepreneurs in Ohio likely wonder where all the money comes from that is needed to grow the profitability of a business. In only 8 percent of cases does a start-up company receive capital from bank loans, but there are a few alternatives
Gathering the funds required to launch a new commercial venture is often challenging for Ohio entrepreneurs. Banks are generally reluctant to lend large sums when borrowers are unable to prove that they have a steady and reliable source of income, and most business startups struggle to turn a profit during their nascent stages. Loans backed by the Small Business Administration are sometimes available, but many entrepreneurs choose to fund new businesses by borrowing from friends or relatives or withdrawing the money needed from their retirement accounts.
As a small business owner, you may find yourself pulled in multiple directions at once on a daily basis. Given the weight of your responsibilities, it can prove difficult to become an expert in all aspects of your business, but understanding how to manage your business's basic accounting needs is of particular importance.
People in Ohio who want to start a small business may have a harder time finding venture capital investors than if they lived in large coastal cities. A report found that for every dollar spent by venture capitalists, 46 cents of it goes to Silicon Valley. Boston, New York and Los Angeles receive 31 cents, leaving only 23 cents remaining to be disbursed to the rest of the country. Mississippi, Alaska, Hawaii, Wyoming and West Virginia received no venture capital funding in 2015. Furthermore, tech firms are two times more likely to receive funding than those that are in another industry.
Running a business of any size is an incredible undertaking. Not only will you need to worry about how to make your business a success, you will also need to organize and manage your workforce. These two priorities can clash at a certain point, and unless you take steps to protect your business, your employees could ultimately jeopardize its future.
If you are a business owner, you may be considering implementing a non-compete agreement for your employees. An effective agreement protects the employer and prevents an employee from leaving and using information gained through previous employment to set up a competing business. You do not want your employees to take client lists or proprietary recipes to your competitors. However, some employers make the mistake of trying to cover every base and creating agreements that are so overreaching that courts refuse to enforce them. In this context, more is not better.