When times are tough, savvy individuals find ways to make extra money by turning their hobbies into side jobs by selling their homemade products or services.
Whether selling arts and crafts online or doing freelance work, entrepreneurs who have earning money from their hobbies need a local city, or county business license.
In Chicago, the Department of Business Affairs and Licensing processes license applications and once complete, the City Clerk issues business licenses.
If providing certain services from one’s home or offering goods, check with the city's zoning and selling requirements as well.
For more information on starting your own business or to become a BBB Accredited Business, visit www.bbb.org
Monday, October 25, 2010
Monday, October 18, 2010
Don't wait until retirement to create a business succession plan
While it’s not fun for a business owner to think about the impact their death or a disability would have on the company, it is nevertheless important to create a succession plan sooner rather than later. The Better Business Bureau outlines five steps to create a solid succession plan and ensure the stability of the business if something unexpected should happen.
A business succession plan is extremely vital to ensure the stability of the business and avoid paying to many taxes or damaging the family finances, but many small business owners lack one. According to a 2008 PNC Bank survey of business owners, 77 percent had a will but only 33 percent had a succession plan for their business.
“While your retirement may seem far off, you should plan for the unexpected by taking the time to create a thorough succession plan,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Waiting until retirement to think about the next generation of the business puts both your family finances and the future success of the company at risk.”
The BBB recommends taking the following steps to create a cohesive and comprehensive succession plan:
Have the tough conversations with family and partners.
When beginning the planning process, get the thoughts and opinions of family members and business partners on their future involvement with the company. This will give you a better idea who really wants to take on the challenges of the company and who might prefer a different path from the family business while perhaps maintaining an equity stake. Also, circle back around and make sure all interested parties understand the succession plan after it is finalized.
Get professional help. A succession plan isn’t just about naming an heir; it’s also a matter of navigating tax laws and minimizing the financial burden on family members. The financial aspect of a succession plan can be very complex. An attorney and/or financial planner can walk you through the process, make sure you’ve tied up all loose ends and help you ease the potential financial strain on family and the business.
Think about the staff. A succession plan isn’t just about tending to finances and ownership. It is also about management and making sure the company can run smoothly in your absence. Make sure that your staff is trained to carry on without you—this includes the high-level strategic plan and the day to day basics of making the business work. Consider creating basic succession management plans for key staff to ensure continuity in service and productivity should someone else depart.
Think about the customers. Customer loyalty for a small business often rests heavily on the owner. Customers might head off to the competition if they think that the company can’t carry on without you. Consider how you can make the transition seamless for customers and not lose the trust they have built in your company should you leave. Encourage relationships between customers and other staff so that they know that the business is more than just you.
Update the plan every few years. Revisit and revise the plan every few years. Make sure it continues to reflect the current status of the business as well as your family situation.
For more trustworthy small business advice, visit www.bbb.org
A business succession plan is extremely vital to ensure the stability of the business and avoid paying to many taxes or damaging the family finances, but many small business owners lack one. According to a 2008 PNC Bank survey of business owners, 77 percent had a will but only 33 percent had a succession plan for their business.
“While your retirement may seem far off, you should plan for the unexpected by taking the time to create a thorough succession plan,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Waiting until retirement to think about the next generation of the business puts both your family finances and the future success of the company at risk.”
The BBB recommends taking the following steps to create a cohesive and comprehensive succession plan:
Have the tough conversations with family and partners.
When beginning the planning process, get the thoughts and opinions of family members and business partners on their future involvement with the company. This will give you a better idea who really wants to take on the challenges of the company and who might prefer a different path from the family business while perhaps maintaining an equity stake. Also, circle back around and make sure all interested parties understand the succession plan after it is finalized.
Get professional help. A succession plan isn’t just about naming an heir; it’s also a matter of navigating tax laws and minimizing the financial burden on family members. The financial aspect of a succession plan can be very complex. An attorney and/or financial planner can walk you through the process, make sure you’ve tied up all loose ends and help you ease the potential financial strain on family and the business.
Think about the staff. A succession plan isn’t just about tending to finances and ownership. It is also about management and making sure the company can run smoothly in your absence. Make sure that your staff is trained to carry on without you—this includes the high-level strategic plan and the day to day basics of making the business work. Consider creating basic succession management plans for key staff to ensure continuity in service and productivity should someone else depart.
Think about the customers. Customer loyalty for a small business often rests heavily on the owner. Customers might head off to the competition if they think that the company can’t carry on without you. Consider how you can make the transition seamless for customers and not lose the trust they have built in your company should you leave. Encourage relationships between customers and other staff so that they know that the business is more than just you.
Update the plan every few years. Revisit and revise the plan every few years. Make sure it continues to reflect the current status of the business as well as your family situation.
For more trustworthy small business advice, visit www.bbb.org
Monday, October 11, 2010
When to Shut the Door on a Traveling Salesman
When salespeople knock on your door, they could represent any number of different legitimate products and services such as magazines, cleaning supplies and even frozen meat and poultry. They might also be itinerant workers who are offering a low-ball estimate to fix your roof or repave your driveway. Regardless of what they are selling, protect your home and your wallet by confirming their credentials.
The BBB recommends being cautious of a door to door salesperson or itinerant worker if they:
Use high pressure sales tactics. A reputable salesman will give you time to think through the deal and make an appointment to return at a later date and provide written information. Watch out if you’re asked to sign up immediately before you do your research. Do not give in to high-pressure sales tactics—even if the deal supposedly won’t last long or the salesperson is aggressive—it’s worth it to stop and think it over first.
Offer a deal that sounds too good to be true. Some salesmen might offer an extremely good price for their products or services. The adage holds true that you get what you pay for and many people have been quickly disappointed when the products didn’t live up to the hype or the company did a shoddy job.
Fail to follow federal law. Federal law requires that if you purchase more than $25 in goods, the salesperson must inform you of your rights to cancel within three business days. Called the “cooling off” rule, these rights are typically included with the company’s contact information on the receipt or contract. Each community, village, city or other body politic requires permits for door to door sales according to their own ordinances. Ask the salesperson to show his or her permit.
Work for a company with a poor rating from your BBB. Before you break out your checkbook, always check the company out with your BBB first to see their rating and if they have any complaints they’ve received in addition to BBB’s overall rating at www.bbb.org
Pay with a check or credit card—rather than cash—in order to take advantage of the consumer protections provided.
Shop only Accredited Businesses. For more information visit www.bbb.org/chicago
The BBB recommends being cautious of a door to door salesperson or itinerant worker if they:
Use high pressure sales tactics. A reputable salesman will give you time to think through the deal and make an appointment to return at a later date and provide written information. Watch out if you’re asked to sign up immediately before you do your research. Do not give in to high-pressure sales tactics—even if the deal supposedly won’t last long or the salesperson is aggressive—it’s worth it to stop and think it over first.
Offer a deal that sounds too good to be true. Some salesmen might offer an extremely good price for their products or services. The adage holds true that you get what you pay for and many people have been quickly disappointed when the products didn’t live up to the hype or the company did a shoddy job.
Fail to follow federal law. Federal law requires that if you purchase more than $25 in goods, the salesperson must inform you of your rights to cancel within three business days. Called the “cooling off” rule, these rights are typically included with the company’s contact information on the receipt or contract. Each community, village, city or other body politic requires permits for door to door sales according to their own ordinances. Ask the salesperson to show his or her permit.
Work for a company with a poor rating from your BBB. Before you break out your checkbook, always check the company out with your BBB first to see their rating and if they have any complaints they’ve received in addition to BBB’s overall rating at www.bbb.org
Pay with a check or credit card—rather than cash—in order to take advantage of the consumer protections provided.
Shop only Accredited Businesses. For more information visit www.bbb.org/chicago
Wednesday, September 29, 2010
Tips When Donating to Charities
The Better Business Bureau advises consumers to give, but give wisely to charities.
Your BBB offers the following tips when donating to charities:
• Do not give cash; always make contributions by check or credit card and make your check payable to the charity, not to the individual collecting the donation.
• Never donated to a charity you know nothing about. Check out the organization with the Better Business Bureau at www.bbb.org
• Don’t be fooled by names that look impressive or that closely resemble the name of a well-known organization.
• Don’t feel pressured into giving a donation and don’t be afraid to request additional information from the charity regarding its finances or programs.
• Keep records of your donations (receipts, canceled checks, and bank statements) so you can document your charitable giving at tax time. Although the value of your time as a volunteer is not deductible, out-of-pocket expenses (including transportation costs) directly related to your volunteer service to a charity are deductible.
• Be aware of claims that state “every penny will go to the charity.” All charities incur expenses. Make sure you know where you donation is going and who is benefiting from it; BBB/Wise Giving Alliance charity standards state that at least sixty-five percent of the organization’s total expenses should be spent on program activities. To see all twenty charity standards visit http://chicago.bbb.org/Charity-Standards/
Your BBB offers the following tips when donating to charities:
• Do not give cash; always make contributions by check or credit card and make your check payable to the charity, not to the individual collecting the donation.
• Never donated to a charity you know nothing about. Check out the organization with the Better Business Bureau at www.bbb.org
• Don’t be fooled by names that look impressive or that closely resemble the name of a well-known organization.
• Don’t feel pressured into giving a donation and don’t be afraid to request additional information from the charity regarding its finances or programs.
• Keep records of your donations (receipts, canceled checks, and bank statements) so you can document your charitable giving at tax time. Although the value of your time as a volunteer is not deductible, out-of-pocket expenses (including transportation costs) directly related to your volunteer service to a charity are deductible.
• Be aware of claims that state “every penny will go to the charity.” All charities incur expenses. Make sure you know where you donation is going and who is benefiting from it; BBB/Wise Giving Alliance charity standards state that at least sixty-five percent of the organization’s total expenses should be spent on program activities. To see all twenty charity standards visit http://chicago.bbb.org/Charity-Standards/
Tuesday, September 21, 2010
Beware: The Truth About Wire Transfers
Money transfers can be convenient when you want to send funds to someone you know, like a trusted friend or relative. But money transfers are extremely risky when you’re dealing with a stranger or an unfamiliar business. Money transfers happen to be the preferred payment method of scammers. Why? Simply because wiring money is fast, irreversible and virtually untraceable.
A person may not be aware for days, sometimes even weeks that they have become victims of a scam. However, money sent by wire can be in the scammer’s hands in a matter of minutes and can’t be recalled. Typically, there’s no way to reverse a wire transfer once the money has been picked up and tracing where the money goes is nearly impossible. The receiver is not always required to show identification or even provide a verifiable mailing address or contact information. Scammers know they can pick up the money at virtually any location in the country so it’s just about impossible to pinpoint exactly where the scammers are operating in time to stop the transaction.
For more information on wire transfers, visit www.bbb.org/chicago
A person may not be aware for days, sometimes even weeks that they have become victims of a scam. However, money sent by wire can be in the scammer’s hands in a matter of minutes and can’t be recalled. Typically, there’s no way to reverse a wire transfer once the money has been picked up and tracing where the money goes is nearly impossible. The receiver is not always required to show identification or even provide a verifiable mailing address or contact information. Scammers know they can pick up the money at virtually any location in the country so it’s just about impossible to pinpoint exactly where the scammers are operating in time to stop the transaction.
For more information on wire transfers, visit www.bbb.org/chicago
Wednesday, September 15, 2010
Auto repair and service
If you’re having car trouble or just looking for a business to perform routine maintenance, your BBB offers tips to find a reputable auto repair shop:
• Shop around before you need a mechanic to avoid being rushed into a last-minute decision.
• Ask friends, family, and other people you trust for recommendations.
• Get a free Reliability Report from your BBB on a specific business or request a list of all BBB Accredited auto repair businesses in the area.
• Check with Attorney General Lisa Madigan’s office or the Department of Consumer Services to see if the business has a record of complaints.
• Shop around by telephone for the best deal, and compare warranty policies on repairs.
• Ask to see current licenses.
• Make sure the shop will honor your vehicle’s warranty.
• Look for shops that display various certifications - like an Automotive Service Excellence seal. Certification indicates that some or all of the technicians meet basic standards of knowledge and competence in specific technical areas. Make sure the certifications are current, but remember that certification alone is no guarantee of good or honest work.
• Ask if the technician or shop has experience working on the same model vehicle as yours.
When considering parts to be repaired or replaced, it’s important to understand parts’ classification:
• New: Parts are made to the original manufacturer’s specifications, either by the vehicle manufacturer or an independent company.
• Remanufactured, rebuilt and reconditioned: These terms generally mean the same thing - parts have been restored to a sound working condition. Many manufacturers offer a warranty covering replacement parts, but not the labor to install them.
• Salvage: These are used parts taken from another vehicle without alteration. Salvage parts may be the only source for certain items, but their reliability is seldom guaranteed.
For additional information you can trust, start with http://www.bbb.org/
• Shop around before you need a mechanic to avoid being rushed into a last-minute decision.
• Ask friends, family, and other people you trust for recommendations.
• Get a free Reliability Report from your BBB on a specific business or request a list of all BBB Accredited auto repair businesses in the area.
• Check with Attorney General Lisa Madigan’s office or the Department of Consumer Services to see if the business has a record of complaints.
• Shop around by telephone for the best deal, and compare warranty policies on repairs.
• Ask to see current licenses.
• Make sure the shop will honor your vehicle’s warranty.
• Look for shops that display various certifications - like an Automotive Service Excellence seal. Certification indicates that some or all of the technicians meet basic standards of knowledge and competence in specific technical areas. Make sure the certifications are current, but remember that certification alone is no guarantee of good or honest work.
• Ask if the technician or shop has experience working on the same model vehicle as yours.
When considering parts to be repaired or replaced, it’s important to understand parts’ classification:
• New: Parts are made to the original manufacturer’s specifications, either by the vehicle manufacturer or an independent company.
• Remanufactured, rebuilt and reconditioned: These terms generally mean the same thing - parts have been restored to a sound working condition. Many manufacturers offer a warranty covering replacement parts, but not the labor to install them.
• Salvage: These are used parts taken from another vehicle without alteration. Salvage parts may be the only source for certain items, but their reliability is seldom guaranteed.
For additional information you can trust, start with http://www.bbb.org/
Thursday, September 2, 2010
Shred It and Forget It
Free Shredding Services Saturday, September 11 at the West Suburban Bank in Downers Grove
Each year more than 8 million Americans fall victim to identity theft, according to a Javelin survey, losing over $40 billion. But now there's a free way you can protect yourself from ID thieves. You can "Shred It and Forget It."
To an identity thief, one person's trash can literally become another person's stolen treasure. By going through garbage cans and diving through dumpsters, thieves dig out documents with valuable information from names and social security numbers to bank and credit card information.
"If you're putting your personal or business information in the trash, there's a chance that somebody's going to get a hold of that and use it for purposes you don't intend," Better Business Bureau serving Chicago and Northern Illinois President & CEO Steve J. Bernas said. "One of the most popular schemes among these low-tech identity thieves is finding pre-approved credit card offers in the trash."
A free shredding event will be held on Saturday, September 11 from 9AM-2PM at the West Suburban Bank, 2800 Finley Road in Downers Grove.
Hosts of the annual event include the Better Business Bureau along with the West Suburban Bank, Federal Trade Commission and United States Postal Inspection Service.
This shredding service is FREE. The Better Business Bureau and its partners are hosting Shred It and Forget It – up to ten boxes of papers shredded per person.
For more information go to chicagoshreds.com
Each year more than 8 million Americans fall victim to identity theft, according to a Javelin survey, losing over $40 billion. But now there's a free way you can protect yourself from ID thieves. You can "Shred It and Forget It."
To an identity thief, one person's trash can literally become another person's stolen treasure. By going through garbage cans and diving through dumpsters, thieves dig out documents with valuable information from names and social security numbers to bank and credit card information.
"If you're putting your personal or business information in the trash, there's a chance that somebody's going to get a hold of that and use it for purposes you don't intend," Better Business Bureau serving Chicago and Northern Illinois President & CEO Steve J. Bernas said. "One of the most popular schemes among these low-tech identity thieves is finding pre-approved credit card offers in the trash."
A free shredding event will be held on Saturday, September 11 from 9AM-2PM at the West Suburban Bank, 2800 Finley Road in Downers Grove.
Hosts of the annual event include the Better Business Bureau along with the West Suburban Bank, Federal Trade Commission and United States Postal Inspection Service.
This shredding service is FREE. The Better Business Bureau and its partners are hosting Shred It and Forget It – up to ten boxes of papers shredded per person.
For more information go to chicagoshreds.com
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