Ask SmallBizClub

I am looking at buying a franchise-based business, what are the major concerns to look for with owning a franchise company?

Due to the risk and work involved in starting a new business, many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch. Also, surveys show that the success rate of franchised businesses is much higher than for businesses started from scratch.

What is the most advantageous way to transition from our existing domain/company name to a new domain/company name?

Technology | Ed Fox

A business that changes its name can notify the IRS of the name change by following the procedures described at the IRS website below. Provided the name change does not require the business to obtain a new Federal Tax ID number (TIN), also known as a Federal Employer Identification Number or EIN, the IRS will change the business name assigned to the business’ EIN.

What’s the best way to differentiate myself and still be profitable?

Marketing | Bill Wortman

In such a competitive business environment, it may be very important that you differentiate yourself from the other locally successful screen printer/embroidery shop in order to capture enough of the market share.

We are looking to purchase a software product, but the current owner is in a foreclosure status. What legal and/or financial issues might we face?

Risk | Bill Wortman

We have provided general business comments and considerations below; however, you will need to consult your lawyer for legal input regarding due diligence, asset liens, purchase contract terms (ownership warranty, liability indemnification, etc), and the other legal issues with your planned software purchase.

What is the best way for me to find some candidates for an IT business in Austin, TX?

Starting a Business | Ed Fox

The IT industry includes several segments – software program development, consulting, gaming, networking activities, hardware, facilities management, data processing, data hosting activities, Internet services, telecommunications, etc.

Should I have my friends and family invest in a bank CD that I utilize as a secured loan for my business?

Risk | Rick Gossett

In our opinion, having investors buy a bank CD (or CDs) to secure a bank loan is not a good option since the money is still at risk if you default on the loan (collateralized by the CD). Also, under this option, the investors would be getting a very low interest rate on the CD and taking all of the investment risk, while the bank would be getting a higher interest rate on the business loan with no, or less, risk.

Where can I get gift cards with magnetic strips to offer to my customers?

Marketing | Will Adams

We do not know if you already utilize a merchant services company or what point-of-sale (POS) system you use for your sales process, however many merchant services companies will provide custom gift card products for their small business customers at a nominal cost.

Can I put a lien on my client’s property without a written contract?

Legal | Bill Wortman

Due to the specific requirements and general complexities with mechanics lien laws, it would appear that you will need to consult your business lawyer to determine if a mechanics lien is available for the specific landscaping work performed and for assistance with a lien filing.

What are the down sides about using a PEO (Professional Employer Organization)?

Human Resources | Bill Wortman

Disadvantages of Using Professional Employer Organizations for Staffing: Many small businesses have been utilizing Professional Employer Organizations (PEOs) for insurance savings and other staffing cost management solutions.

How do I market my new product to wholesale purchasers?

Marketing | Bill Wortman

Channel marketing is tough. I learned the hard way from years working with big box office stores and computer stores. I don’t know your market but in my market each of the major retail chains had a preferred distributor and wouldn’t buy from anybody else.