A. Dear Rebecca,
When you want to go into business seriously, it is important that you are
doing it legally. The most important item you must have is a business license
(if required for your business). Given that business guidelines can be
different from one county to another, I suggest you visit your county clerk of
court or your Business Information Office in your City Hall and ask for
guidelines, rules and regulations and licenses needed to operate your planned
Even if you are not required to have a license, it is important to register
your business in the county where you reside or want to do business. I suggest
you read the article "Most Common Questions Asked When Starting a
Business" at http://www.powerhomebiz.com/vol45/questions.htm
. Aside from
registering your business, you need to have a fictitious business name for
your business banking account, sales tax number (if required) and employer
identification number (if applicable)
The whole point of registering your business is to protect your own
business interests. Since you plan to sell your products on consignment, it is
very necessary that you have some kind of business identity; otherwise the
stores that you want to deal with, may not even entertain you. With a
registered business, you are conveying the impression that that you are a
professional business that should be taken seriously. Some stores or companies
normally don't pay much attention to individuals making deals with them. They
prefer to deal with legitimate businesses no matter how small.
The success of a consignment arrangement depends on the leveling of the
expectations of the consignor and the consignee. You may want to read the
article "11 Tips When Selling Through Consignment" at http://www.powerhomebiz.com/vol58/consignment.htm
to get ideas on what to look out for when consigning your products to others.
The article provides some guidelines on setting of the rates, retrieving of
your goods and making sure that everything is in writing. Sometimes, we trust
other people so much because we are honest. However, you should always set
precautionary measures specially when you consign your goods with someone
else. Some people can take advantage of you, particularly if they know that
you are doing business without a license.
After that you may start planning by writing a business plan for yourself.
The business plan will be your road map which will be your guide on running
the business. Remember, if you have a plan for yourself, you will never go to
the wrong direction because you have set everything up. If you need assistance
on this let us know and we shall refer you to a book which you can really use.
Good Luck !
the PowerHomeBiz.com Guide:
Nach Maravilla is
the Publisher of Power Homebiz Guides. He has over thirty years
experience in sales and marketing of various products, which
covered as he jokingly describes, "from toothpicks to
airplanes" He also had extensive experience in
International trading and he always excelled in special promotional
ideas for retail outlets.
The opinions expressed in this column are
those of the author, not of PowerHomeBiz.com.
should not treat the Guide's response as legal, accounting, or
professional advice as all answers are intended to be general in
nature. Such advice can only be properly given by qualified
professionals who are fully aware of a user's specific geographical areas or circumstances, such
an attorney or accountant.