Sole Proprietorship Advantages:
1. Easy and quick and usually the least ex-pensive to establish.

2. You have total ownership and control of the business.

3. All the profits of the business belong to you, the owner.

4. No additional Federal taxation on business profits (No double taxation).

5. No periodic business reporting to the IRS or other government agency is required.

6. Income tax filing is simply part of your annual personal tax return (Schedule C).

Sole Proprietorship Disadvantages:
1. The owner is personally liable for all business debts and the liability is not limited to the value of the business. You are personally liable for any and all business debt you incur.

2. It is generally more difficult to borrow money or obtain outside investment than with other types of legal structures.

3. If the owner is incapacitated for any reason, the business is likely to fail.

4. All management responsibility is with the owner which can be a heavy burden.

Important Note
A “home business” is frequently a sole proprietorship and offers a number of unique ad-vantages. However, just because you are con-ducting business from your home does not exempt you from possible legal or other liabilities.

Partnership
This type of business is just what the name implies: Business ownership is divided between two (or more) partners. The general partnership is the most common and is formed to conduct a business with two or more partners being fully involved in the operation of the business. All the partners share both profits and liabilities. A limited partner-ship, as the name implies, provides for limited liability of the partners. (This liability can be no greater than the partner’s investment in the partnership). In a limited partnership there must be a least one general partner who remains liable for all the debts of the partnership. Forming a partnership is complex and legal advice is very important. The kind of partnership and the type of partner you will be determines your potential personal liability.

Partnership Advantages:
1. Synergy as a result of pooling partners’ different areas of expertise.

2. The partnership does not pay Federal in-come taxes. An informational tax return (IRS Form 1065) must be filed which shows the pass-through of income/loss to each partner.

3. Liability may be spread among the partners.

4. Investment can come from the partners in the form of a loan which creates interest income for the partners and a business deduction for the partnership.

Partnership Disadvantages:
1. Formation and subsequent changes in structure are complex.

2. Problems with partner(s) as the result of misunderstandings, different goals, etc., can weaken or destroy the partnership.

3. Limited partners are liable for debt if they are active managers in the business. General partners have unlimited liability. You may also be liable for the commitments of your partners.

Corporation
There are three major types of corporations, the C-corporation (“regular corporation”), the S-corporation (or “S-Corp”), and the Limited Liability Corporation (or “LLC”). All of these forms of the corporation are complex legal entities. Their detailed structure may vary from state to state (incorporating a business in a given state allows you to conduct business only in that state). It is essential for you to obtain legal advice if you are thinking about forming a corporation. Since each state has its own set of corporation laws, you should contact the appropriate state office in your state (usually the office of the Secretary of State) for additional material and procedures. Most offices can provide a guide for new businesses to follow for incorporation and doing business in their state. Call or write for a copy. Most people immediately think of incorporating in order to minimize their personal liability. Indeed, the liability of stockholders (owners) in a corporation is limited under certain and complex conditions. Today, with the Tax Reform Act of 1986 and other legislation, there are really few good tax reasons to incorporate (with the exception of dividing corporate profits as noted below). The best reason for incorporating is, in fact, the limited liability. However, there is no such thing as total insulation from liability resulting from doing business as a corporation.

Record keeping and tax matters with a corporation are difficult and time-consuming tasks usually requiring the services of an accountant. You need to keep this in mind when considering operating costs for your business.

Avoid the “do it yourself” incorporation guides. Incorporating is a complex process and you should not take on the task yourself. You cannot afford any mistakes at this point in your new business, so if you decide incorporation is for you, do it right and spend the money required to have it done professionally. Legal fees for setting up a corporation can run between $350 and $1,500 (assuming it is relatively straightforward).

Regular Corporation
The corporation is a taxable entity and, as such, pays taxes. This results in the “double taxation” you may have heard about. The corporation pays corporate taxes on its profits, and then, you the owner (shareholder), pay personal taxes on the dividends your corporation pays you. (The dividends are not deductible by the corporation). This is one of the biggest disadvantages of a corporation.On the other hand, incorporating your business usually makes it easier to establish credit with suppliers and borrow from banks. If you expect to use outside investors for business capital, a corporation is a must.

Regular Corporation Advantages:
1. Shareholders (the owners) enjoy personal limited liability.

2. It is generally easier to obtain business capital than with other legal structures.

3. Profits may be divided among owners and the corporation in order to reduce taxes by taking advantage of lower tax rates.

4. The corporation does not dissolve upon the death of a stockholder (owner) or if ownership changes.

5. Favorable tax treatment for employee fringe benefits including medical, disability, and life insurance plans.

6. 70% of any dividends received by the corporation from stock investments are deductible (unless you purchased the stock with borrowed money).

Regular Corporation Disadvantages:
1. More expensive and complex to set up than other legal structures.

2. Completing tax returns usually requires the help of an accountant.

3. Double taxation on profits paid to owners (corporation pays corporate taxes on profits and owner pays personal taxes on dividends from the corporation).

4. Recurring annual corporate fees.

5. Tax rates are higher than individual rates for profits greater than approximately $75,000.

6. 28% accumulated earnings tax on profits in excess of $250,000.

7. Business losses are not deductible by the corporation.

S-Corporation
The S-corporation offers the limited liability advantages of a corporation but does NOT pay Federal taxes. All the earnings and losses of an S-corporation are passed through to the share-holders. It is a popular form of incorporation in the startup years of a business but there are some subtle disadvantages that need to be taken into account as you grow. Again, because of the complexities involved, talk with your attorney and accountant.

S-Corporation Advantages:
1. Owners enjoy personal limited liability as in a regular corporation.

2. No Federal income tax liability, and in most cases, no state income tax.

3. Profit/losses are passed to owners … no double taxation.

4. The S-corporation does not dissolve if one of the owners dies or otherwise leaves (like a regular corporation).

5. Wholly owned subsidiaries are permitted.

S-Corporation Disadvantages:
1. Legal assistance is required to set up.

2. Maximum of 75 shareholders.

3. Only one class of common stock is permitted (no preferred stock).

Limited Liability Corporation (LLC)
This type of corporation blends the tax advantages of a partnership and the limited liability advantages of a corporation. Owners of an LLC are referred to as “members.” As you might expect, it also has some limitations but is definitely worth considering. Ask about the LLC when you contact your appropriate state office for incorporation information as suggested earlier in the chapter.

LLC Advantages:
1. Limited personal liability for the owners (like a corporation and unlike a partnership).

2. No Federal taxes (like a partnership).

3. No limit on the number of stockholders (unlike an S-corporation).

4. More than one class of stock is permitted (unlike an S-corporation).

5. Business losses may be deducted on your personal tax return (like a S-corporation).

LLC Disadvantages:
1. Legal assistance is required to set up. The paperwork is complex.

2. No “continuity of life” as in a regular corporation. The LLC dissolves if one of the owners dies or otherwise leaves. However, other formal agreements between the owners can overcome this.

3. Some states require than an LLC have more than one member.

Making Your Choice
It is difficult to give specific advice as to the choice of legal business structure since every situation will be unique. The ad-vantages and disadvantages noted above should be assessed based on your particular situation. In any case, it is important to discuss your plans with advisors including both an attorney and an accountant prior to making your final decision. The various tax consequences for corporations and partnerships are complex and must be carefully considered for each specific situation.

• How much do I really want to earn?
• How much do I really need to spend on the business? (See below.)
• How much do I really need to have fun for myself?
• How much money is left?
• Is that the number I have to keep in the bank so I can sleep at night?

2. Do only what you love. The rest, delegate to partners, employees and competitors.

3. Ensure that there is a market demand for what you love to do.

4. Do it with the people that you love, or at least like doing business with. Ask yourself:

• Where are they?
• Who are they?
• Where do they hang out?
• How do they buy?
• Who do they take recommendations from?
• How much money do they spend?
• Is there enough of them?

5. Position yourself as a narrowly focused “expert”. Ask yourself:

• What do we do differently from our competitors that people actually find value in?
• How do we do things differently from our competitors that people actually find value in?
• What do I know that our competitors do not and our clients see value in?

6. Ensure that you can deliver it for the amount of money that they will spend. Ask yourself:

• Can we deliver the solution for the price that the client wants us to and still make a hefty profit? If the answer is “No”, move on to another thing that you love. Repeat Steps 1 through 5.

7. Write professionally edited articles and get them published in trade and other magazines read by your clients and professionals in your “referral circle”. Ask yourself:

• Which successful organizations do I need to join where I will be recognized by my peers and provide referral business for my clients?
• What documentation does my “referral circle” and clients like to read?
• Who do I need to contact to submit my professionally edited copy to?

8. Hire a PR Consultant. Brian Scudamore, owner of 1-800-Got-Junk hired his first Public Relations consultant six years ago. Now he has 8 fulltime PR consultants who’s job is to “sell” his company to the media. They have so much stuff going on they have to have 8 people sharing their story to the media all over the world. No “trees falling in the forest with no one around to hear them” going on around there. They are based in quiet little seaside Vancouver and Brian and his crew were featured on Oprah!

9. Continue to build your database. Consider using Salesforce.com. You can retrieve all of your info from your blackberry. Ask yourself:

• What are the names of people in my geographic area that I like to work with? (Get them from their business card, the newspaper, the internet.)
• Who belongs to the organizations that can refer my company?
• Whom should I make an appointment to meet with?
  Keep in consistent contact with these people. Send out a quarterly e-newsletter or printed copy of the latest article published with a story of your latest success.

10. Get in front of people. Book at least 5 business development appointments a week with “influencers” who can introduce their clients to your firm. One of our “solo-flyer” friends said it best: Once she’s in front of a client she has a 97% closing ratio. She is in the interior design business. Her influencers are architects, contractors, clients-to-be, magazine editors, furniture/appliance retailers, kitchen designers and tv producers.

You have a gift that needs to be shared. By interacting with people who share your passion, your heart is fuelled with the energy to go on and create more beautiful solutions each and every day.

One of the key challenges for any business is to remain focused and invest resources for maximum pay-off. It’s said that 80% of a business’s activity accounts for only 20% of total profits. In plain language, most of the work we do is unfocused, poorly designed and ineffective. In today’s competitive world, no business, whether it’s an individual professional or a large manufacturing operation, can survive with that much lost time and wasted effort. A business plan can help, but most small business owners (and some managers/supervisors) hate doing them! In the spirit that any map is better than no map, here are my top ten keys to creating your own map to success:

1. Have a dream. This sounds simple and obvious, but answering the questions: “Why am I doing this? What’s the big picture?” can lead to profound changes in many organizations. Too often in the daily grind, we forget to think about where we want to go, or why we started the business or took the job in the first place.

2. Make the dream bigger.What if the whole world bought your products or loved your service? What would it mean if your profits, or your personal income were 10 times greater? How about 100, or 1000 times greater? What shifts in focus would that require? Would your daily routine change? Would you spend your time and energy on different problems, attend to different priorities? Why wait?

3. Make the dream clearer. Have a precise description of exactly what you want and hang it in your office, in the employee lunch room, in the restrooms, and on the dash of your car. Use key words, phrases, a photograph of your future office building or whatever symbol will crystallize the dream and make it real for you and for every member of your team

4. List 100 obstacles that will get in your way. Enlist staff, friends, competitors to help. Ask your customers to join with you in looking for the roadblocks, blindspots and bottlenecks that prevent you from growing. Make it a matter of personal pride to never have a problem pop up that you haven’t already considered.

5. List 1000 solutions, 10 for each potential problem. The key here is creativity, flexibility, and responding instantly when the unexpected happens. Expect the unexpected, and have a file of alternative solutions at your finger tips. It’s called contingency planning. Do it!

6. Get tons of advice. Have your accountant, your attorney, your insurance agent, your spouse and your cousin take a look at this. If you can’t explain it to them, will you be able to explain it to your staff? If these people don’t understand and support your plan, will you be able to maintain your own enthusiasm over the long haul?

7. Get GOOD advice. After explaining your dream and your plan to lots of people, sit down with a handful of those you trust the most, and pay them to give you their best feedback. Lots of people can give you technical advice, expert advice, and even friendly advice. Wisdom is more important, and harder to find.

8. Create the path of least resistance. Using the dream as your goal, and knowing the obstacles that could get in your way, begin mapping your way through the wilderness to your destination. What’s the easiest, most direct, route? What’s the safest route? Which combination of activities and priorities makes the most sense?

9. Take action. Once you know where you want to go and have a path to get there, start walking! Too many managers put their business plan into a nice file folder that is never looked at because they are too busy working “hard”. Instead, use your efforts and your plan together so that your effort is focused, productive and smart!

10. Re-assess often. Just as someone hiking across barren territory needs to periodically stop and check their map and compass to avoid walking in circles, business owners and managers need to check their direction and their priorities. Conditions change. Opportunities pop up or disappear, new problems arrive or the nature of the dream changes. All of these things will happen. Plan for it! Regularly step outside your business to re-assess and redefine your most important tasks. You can’t afford to spend 80% of your effort in busywork and unprofitable distractions. Re-assess and stay on course.

1. Enlarge your circle of friends. To increase the number of opportunities available, you need to go beyond traditional networking to generate friendships and trust with people who “aren’t like me”. Use any system you prefer, but be certain that your friendships include various ethnic, economic and social backgrounds, people who “think differently” – artists, engineers, teachers, “kids” and “old timers”. Don’t just “think outside the box”; network outside your circle!
2. Always be open to possibility. Years ago one of my mentors told me, “Everything I have is for sale, except my wife.” That may be rather crude and politically incorrect today, but his point was that any business opportunity, any creative idea or investment suggestion was worth at least a few seconds of his time. Look for the unlikely, consider the unthinkable and ponder the improbable. Life’s biggest opportunities are often disguised.
3. Practice creativity. Intentionally think of a way to turn every crack-pot, bad idea into something useful. This is not about finding a way to invest in every scheme that comes your way, it’s about practicing creativity, turning ideas on their heads, finding the kernel of wisdom or value, and throwing the rest away.
4. Avoid being overly tied to your goals. Goals, and plans for achieving them, can be extremely useful. They can keep us on track, focus our efforts, and motivate us when we’re tired. But they can also blind us to new possibilities. Work toward your goals; don’t let them run your life. New ideas and alternative possibilities will come along. Don’t drive right past them in your hurry to finish last year’s project!
5. “He who hesitates is a damned fool!” This quote from Mae West is a classic call to action. Being “light on your feet”, or in Muhammad Ali’s old phrase, being able to “float like a butterfly and sting like a bee” is useful business advice. There are times when opportunity knocks, but only stays at the door for a moment. Be prepared to respond quickly.
6. “Fools rush in where angels fear to tread.” Being able to respond quickly is not the same as being foolish. About 95% of the opportunities, ideas and invitations that come your way will not be worth pursuing. If it’s a good idea today, it will likely still be a good idea after a night’s sleep and consultation with your trusted advisors. Balance, thoughtfulness and a healthy skepticism are also critical.
7. Assess the probability of success. Just as risk management compares the odds of being struck by lightening (extremely unlikely) to the chances of a critical shipment being lost (more likely), and assigns different values to each, so opportunities have differing probabilities of success. Just because an opportunity could work out, doesn’t mean it will.
8. Assess the potential payoffs. Again, borrowing from risk management, it’s essential to asses the potential for “winning big”. The guy who invented the Frisbee had a strange idea with a low probability of catching on, but the rewards have been enormous! The same goes for turning a coffee bar into Starbucks or sneakers into Nike. What were the probabilities that a couple of college students could turn some computer code into an operating system and end up with Microsoft? Low probability of success, but huge payoffs!
9. Actively invite opportunities. Let friends, co-workers, colleagues, competitors and customers know that you are receptive to new ideas. They are much more likely to share a possibility with you if they know you are always “looking for ideas”, having fun with possibilities and trying to understand the “next big thing”. Let them know you aren’t necessarily hoping to change careers, just open and interested in new opportunities. And don’t ridicule anything! Every idea is someone’s baby and, amazingly, most of them have some value hidden in there somewhere!
10. Assess opportunities in terms of your values. You know your strengths, your interests and your core values. There will be opportunities that will ask you to become someone you aren’t. You could make a fortune in stocks, real estate, software, or a thousand other industries, but you have to live with yourself. First, maintain your integrity.

“… I’d like to register my business name with the proper town authorities as a sole proprietorship. To protect myself and my business name from being copied and altered, do I have to register any and all variations of the name? And is this done separately or is it done under the one application? … Is this what I need to do in order to stop anyone from using a variation of my business name? And can my business name be trademarked along with its variations?”

This question (an extract from an email I received from a new subscriber during the week) is a good illustration of how confusing the purpose of and difference between business names and trademarks can be for small business and others without ready access to an army of lawyers to lead them through the maze. Add your domain name to the mix and it becomes as clear as mud.

In this article, we’ll look at what business names, trademarks and domain names are (and aren’t), what you can and need to do to protect them and issues to think about when deciding upon what to choose for your business and domain names and whether trademark protection is appropriate (or even possible).

YOUR BUSINESS NAME

If you’re going to conduct your business under a “fictitious” name, i.e., one other than its legal name, you will need to register the fictitious name with the appropriate government agency in your state. This usually means your local county recorder’s office but, depending on where you live, it may mean your state’s Secretary of State Office. In countries other than the U.S., the appropriate body may be some sort of government Department of Small Business.

So what’s your “legal” name? If you’re conducting business as a sole proprietorship, your legal name is your name, i.e. Fred Smith. If you’re any sort of other legal entity such as a corporation, limited liability company, limited partnership etc., the legal name of your business is the name of your corporation, company, or limited partnership.

If you conduct business under your own name or that of your corporation, limited liability company or limited partnership, you do NOT need to register a fictitious business name with the State because you are not conducting business under a fictitious name, you are conducting it under your business’s legal name.

Legal Purpose of a Fictitious Business Name

The reason you must register a fictitious business name to operate a business under a name other than your business’s legal name is to protect the consuming public – those members of the public who come in contact with your business – as well as other parties such as suppliers.

The purpose of registration is so that those who deal with your business can search for and identify the person(s) “behind” the name. As a fictitious business name is not a legal entity, it does not have contractual capacity (i.e. it cannot enter into contracts in its own name). A consumer wanting to do business with your business needs to be able to verify that the person with whom he or she is contracting has authority to enter into the contract as the business entity. By searching the fictitious business names register, the consumer can find out who is “behind” the business, as that is the party with whom he or she will be contracting (and, sometimes, suing if the transaction goes bad!).

Example: Alfreda Smith conducts her florist business under the registered fictitious business name, “Blooming Right”. Florist Supplies, Inc. wants to enter into a contract with Blooming Right to supply Blooming Right’s stock of tulips. As Blooming Right is not a legal entity and only a DBA (“doing business as”, another term for a fictitious business name), Blooming Right does not have legal capacity to enter into the supply contract with Florist Supplies, Inc.. (Florist Supplies, Inc., of course, being a corporation – as evidenced by the “Inc.” – is a legal entity, and therefore has contractual capacity.) For this reason, Florist Supplies, Inc. will only be prepared to contract with Alfreda Smith, the legal entity behind Blooming Right. Florist Supplies, Inc. identifies the legal entity with contractual capacity by searching the fictitious business names register. Accordingly, the supply contract finally entered into will be between Florist Supplies, Inc. and Alfreda Smith, d/b/a Blooming Right.

You should also know that you won’t be able to open a bank account for your business unless and until your fictitious business name is registered with the state.

Just because you’ve registered your business name in your county doesn’t mean that someone else can’t register the same business name in another county. Registration is only designed to allow people who deal with your business to identify you as the person behind that particular business. It doesn’t give you exclusive use of that name for all purposes in all areas. For this reason, if your business name is also your business’s “brand”, you should also register it as a trademark, if possible.

TRADEMARKS

As is evident from the purpose of registering a fictitious business name, a business name is NOT a trademark and a registered business name will generally NOT operate to protect the name from use by others (except as an identical or deceptively similar business name in the same county). So how do you protect your business’s “name” if it also identifies and distinguishes the source of your goods or services from those of your competitors’? The answer is federal trademark registration. (Although you can also register trademarks at the state level, state registration confers only limited benefits and should be considered only if federal registration is not possible).

What is a Trademark?

As suggested above, a trademark is either “a word, phrase, symbol or design, or combination of words, phrases, symbols or designs, which identifies and distinguishes the source of the goods or services of one party from those of others.” (http://www.uspto.gov/web/offices/tac/doc/basic/basic_facts.html)

A service mark is the same thing except it relates to the source of a service rather than a product.

Registration Not Required

A trademark (or service mark) does not need to be registered to attain status as a mark i.e. unregistered trademarks are recognized by the common law. If you have used a distinctive trademark (that you own) in commerce, then you probably have a common law trademark already.

But registration confers benefits not available if you rely only on your common law trademark rights, such as the presumption that you are the owner of the mark for the goods and services specified in the registration and the entitlement to use the mark nationwide. Absent federal registration, you would have to prove these things in court as preliminary questions of fact. Imagine trying to satisfy a court that you are entitled to exclusive nationwide use of the mark if you’ve only been using the mark in two states. Other benefits of federal registration include: (a) the fact that registration acts as constructive notice of your claim to the mark; (b) federal court jurisdiction can be invoked; and (c) registration can be used as a basis for obtaining registration in other countries.

What Can Be Trademarked?

It may be easier to answer this question by looking first at what cannot be trademarked. The U.S. Patent and Trademark Office (PTO) won’t allow you to register a mark that is not distinctive (discussed below); that is already in use or that contains names of living persons without their consent; the United States flag; other federal and local government insignia; name or likeness of a deceased U.S. President without the widow’s consent; words or symbols that disparage living or deceased persons, institutions, beliefs or national symbols and marks that are judged immoral, deceptive or scandalous.

Distinctiveness

As a general rule, a trademark must be distinctive in order to be accepted for registration. This is an enormously complex issue in trademark law and beyond the scope of this article. But for our purposes, just keep in mind that a mark that is in ordinary or common usage in the community will not be capable of registration because no one person can be said to be the “owner”.

For example, let’s say your business is selling still life paintings. You would have trouble registering “Still Life” as a trademark because it is a term in common usage and has a general meaning in the community. (Note though that certain types of marks while not distinctive YET may become so in the future, i.e. they are capable of acquiring a secondary meaning. Such marks may be eligible for registration and limited protection on the supplemental trademark register. For more on this, consult your attorney.*)

(On the other hand, you may well be able to register the name Still Life as your fictitious business name provided the same or a deceptively similar name is not already registered in your county.) In order to maximize the chances of your trademark being accepted for registration, therefore, try to come up with a “coined” or “fanciful” name. The example often given by trademark lawyers of a particularly successful coined name is Kodak. It’s a name that means nothing apart from its association with cameras and now expanded lines of products but is immediately identifiable by anyone who sees it as a trademark of the Eastman Kodak company.

So, the more novel, unique and fanciful the name, the more likely you will be able to register it federally.

DOMAIN NAMES

So, how does your domain name figure into all of this? In particular, what is the interrelationship between registered trademarks and domain names?

Domain Names VS. Trademarks : David VS. Goliath

As a general rule, as the law presently stands, it is *possible* to register any domain name that isn’t already taken without regard to whether that name is a trademark owned by a third party. *But do so at your peril*. Courts are increasingly siding with trademark owners against domain name holders even when the domain name holder acquired the domain name with perfectly innocent intentions, i.e. with no intention of infringing on the trademark or holding it for ransom (cybersquatting).

Domain Names AS Trademarks

Let’s say that the domain name you want to use is not already a trademark. Can you register it as a trademark? Depends. Maybe.

A distinctive, coined domain name may well be capable of trademark registration for the reasons discussed above. A An example is my own domain, ahbbo.com. The word “ahbbo” has no common, ordinary meaning and so would most likely be capable of being registered as a federal trademark. If I tried to register the trademark “A Home-Based Business Online” I would have trouble even though I own that domain name because the words are, in one variation or another, in common, ordinary usage. To be registrable, however, the domain name must act as a source identifier for the product or service offered by the business (simply because ANY trademark must identify and distinguish the source of the product or service), and not merely act as an address used to access a website.

SUMMING UP

Let’s go back now and answer the original question:”… I’d like to register my business name with the proper town authorities as a sole proprietorship. To protect myself and my business name from being copied and altered, do I have to register any and all variations of the name? And is this done separately or is it done under the one application? … Is this what I need to do in order to stop anyone from using a variation of my business name? And can my business name be trademarked along with its variations?”

“To protect myself and my business name from being copied and altered, do I have to register any and all variations of the name?”

No. The question misconceives the function and effect of a fictitious busness name. The only function of the registered business name is to allow the consuming public and others, such as suppliers, to ascertain the legal entity behind the fictitious business name. It is not the business’s name that requires protection from being copied and altered, it is the business’s trademark(s). If you are looking to establish a “brand” with your business name, make sure the name is the same as your trademarks and register your trademarks.

“Do I have to register any and all variations of the name?”

This was asked in the context of the business name. For the reason just given, the answer is no. But for the purposes of our trademark analysis, let’s reframe the question. Is it necessary to register any and all variations of the trademark?

No. Once you have federal trademark protection for your mark, the trademark examiner will (in theory, at least) not allow anyone else to register a mark that is identical or deceptively similar to your mark.

STRATEGY

If you’re still in the planning stages of your business and haven’t as yet registered a fictitious business name or decided on a domain name, stop and think. Now’s the time to make some pretty crucial decisions about the future protection of the intellectual property of your business. Here’s the sequence I recommend:

1. Trademark

This is the most important of the three (i.e. business name, trademark and domain name) from the point of view of differentiating your product/service from your competitors’. So take your time and coin a mark that has no meaning outside of your product or service (remember the Kodak example) but at the same time try and make it suggestive of the product or service you offer. Also, try and keep it short and memorable. Yes, this IS a difficult task! If it was easy, everyone would do it wouldn’t they?

2. Domain Name

The second most important of the three. Once you’ve registered your coined trademark, register the same name as your domain name. See the importance of making the mark suggestive, short and memorable? Obviously, in the process of creating your mark, you should also check to make sure that the same domain name is available also.

3. Business Name

The least important and easiest of the three. Here, though, the suggestiveness of your trademark is more important. Sure, registering a business name is only to allow others to identify the legal entity behind it but it’s also the name that goes on your letterhead so it needs to have some sort of meaning relevant to the product or service that you’re selling. So when you’re working on your trademark/domain name, make sure that, in addition to it being distinctive and memorable, it also suggests the type of business or product/service involved. Naturally, when you’re going through this process, also make sure the business name is available in your county. Of course, by conceiving a coined name, you’re almost guaranteeing that it won’t already be taken.

Hopefully you can see that by thinking through the interrelatedness
of each of your business name, trademark and domain name you can establish your business in such a way that each element reinforces the others, thereby strengthening your brand. Once you have a firmly established brand, your marketing efforts become a whole lot easier. Promote the brand and you automatically promote the product/service you offer, and vice versa.

There’s no substitute for getting this bit right. Do it right first time and you won’t have to waste time and resources two years from now trying to bring your name, your trademarks and your domain names into line. The legal issues can be complex, however, and this is one area where you should *definitely* consult your lawyer*. The relatively small cost you spend at this stage will pay off BIG TIME down the track.

Over the years, many people have said to me “I’d love to start a home-based business, but which kind would be the right one for me?” The answer is difficult, as it is different for just about everyone. I looked for five years before finding the right home-based business, only to find out two years later, that it really wasn’t the right business after all! I searched high and low, read just about every book on the subject, and still found myself struggling to find the ‘right’ biz! Luckily time and experience finally led me to that home-based business that really was “the right one”. But I’m sure YOU don’t want to wait that long.

So, what can you do? First, there are some questions you have to answer before you can decide on a business. It’s important to remember, when you work for yourself, you are your only employee–you have to do everything from marketing, to accounting, to taking out the trash–and everything else in between (unless you outsource). You will probably work harder for yourself then for any “Employer” you’ve ever had!

With that having been said, I believe it’s extremely important to find something you love, something you are passionate about, and then you can turn it into your business (or find a home-based business opportunity that is a good fit). It’s much easier to get up in the morning and start doing something you love than it is to get up and force yourself to work. There will be no boss to poke you along–just you.

So, what questions should you ask yourself? First and foremost, what do I love doing? When answering this question, be open minded! Don’t hold yourself back by saying things like “I could never make money doing that!” That is not what this exercise is about. Just jot down some things that you really enjoy doing, and try to be as honest as possible. Try to remember times when you felt happiest, your most vibrant and alive. Write those things down, even if they don’t seem ‘work’ related (yet!).

Once you have finished writing down the things you are most passionate about, try brainstorming about how to turn those ideas into a business.

The next question you must answer is “Where do I have experience?” This can be a very important question, or, believe it or not, a completely irrelevant one. Many people start their own businesses without an ounce of experience in their business field. You may need to take classes, attend seminars, or just practice, practice, practice before you learn your trade.

But the question still needs to be answered. This ‘experience’ need not come only from prior jobs, but also from volunteer positions, hobbies, school, etc. Once you have finished writing this down, try to see how your experience could help you turn your passions into a business.

Another question you should ask yourself “What contacts do I have from my prior experience that could boost my business?” But don’t discount your former employers, teachers, and/or friends and family as possible sources for business and/or networking.

So, taking your passions, experience and contacts into consideration, your answers might look something like this: You have a passion for Art, went to school and received a degree and know many gallery owners. If it’s that cut and dry, you have a link, and a very feasible place to start your brainstorming. Many times these links will not be so obvious.

Finally, “what resources or assets do you have?” This is important. If you want to raise Emu, but live in a condo in the city, you will have to find a way to obtain land and care for the animals. On the other hand, if you have a great computer, and you want to start a desktop publishing business, you may only need some software. The more assets you have related to the business you want to start, the better. Because if start up costs are low, you chances for success should be much higher.

Whatever business you start, you must prioritize. Can you work “from” home (when the actual “work” is done somewhere other then home, like in the cases of the following businesses: landscaping, handyman, direct sales via home parties, etc.) as opposed “at” home (graphic design, newsletter publishing, web design, etc.)? Will your business be full or part time? Will you need to schedule your work around nap times and soccer practice, or a part time job? Will your business fit well with the lifestyle you want? City dwellers probably wouldn’t enjoy ranching, and folks who live in rural areas probably would want to start a personal shopper business.

If you answer these questions, and still don’t have any ideas, give yourself some time . . . do some research. Don’t get sucked into a scam, just because you want to work from home. And don’t get into the latest ‘hot’ home business just because everyone else is doing it, because you will probably end up quitting because it was never something you were passionate about.

On a final note: If you think you must start a home business, because you need money as soon as possible, remember that most businesses don’t actually make money for many months, if not years. Building a business takes time, effort, persistence, and a passion for what you do!

I knew that one day I wanted to start and run my own business. I knew it from the bottom of my heart and I also knew that by starting my own business I was going to be able to work on my passion. I had already earned an MBA and was tired of working for “Corporate America”.

A lot of mentors and friends warned me not to quit my corporate job before getting a few part-time contracts. Well, after following their advice, I realized that I would never dive into the entrepreneurial world simply because there was not enough time while juggling these two jobs. Working as a corporate consultant you simply do not have time for starting a new business – Reality check number one. 

I am not saying that people cannot start their own business while working at their permanent jobs; however, it is more difficult to do this if you have a demanding job with long hours. I would also not recommend it for you because you may not be giving your best to your employer simply due to other priorities. Give your best at your “day job”. After you start your business they will become important contributors to your promotional strategy, therefore it is very important to leave with the best impressions. 

Well, as I realized that there was simply not time to prepare for the launch of the business, I had to make a decision to either work in a corporation or quit my job. My desire for starting my business was so strong that after calculating my finances and seeing that I had enough reserves to live on I went ahead. Oh boy, if I only knew then. 

Confident that I already knew enough about business, from a solid education accompanied with my corporate world experience, I was absolutely sure that I did not have to learn many things. Ha! I was wrong! 

Below are few reality checks about starting your business along with some advantages many women have in this area. 

1. Ask for HELP even with a tight budget
   It does not matter if you graduated from the best business schools and served the most successful companies. Running your own business asks for a different skill-set; one that you are most likely not accustomed to. You will need to wear different hats Marketing, Public Relations, Accounting, Budgeting and others that you probably were not used to. You will have to do a lot of administrative things on your own and these tasks can be very time-consuming. Hire an assistant. Consider virtual assistants who are less expensive than actual employees. The hours they save you will make so much difference. 
   
2. Kill the loneliness-Connect
   As an entrepreneur, you will very often feel lonely and at times unmotivated or discouraged. After all, you work so hard in growing your business that sometimes you do not even track your working hours. What you thought of as working freedom very soon will just seem an illusion. Doubts come to your mind and you are not so sure if you’ve chosen the right direction. Surround yourself with friends and other entrepreneurs. Do not allow yourself to have negative thoughts – and believe me if you are alone for a longer time you will start getting negative feelings. You need to connect and socialize with other fellows. 
   
3. Feel comfortable being small
   Very often I see entrepreneurs, especially the ones that worked for too many years in large companies, wanting to impress by being bigger than what they are. Well, that is absurd and can only harm you. Being small has a lot of advantages and trying to be someone that you are not will cost you your position and image. Project who you are and design your business according to your needs. 
   
4. Stop searching for your perfect clients
   Yes, too often entrepreneurs are wasting time in nailing down their perfect clients. Instead of following this strategy it is better to have the perfect clients come to you. Do you wonder how you can do this? Just concentrate all your efforts on what you do best. Become an expert in your field. Get visible to a target audience that needs your services or products. 
   
5. Balance your life
   This may seem very difficult for someone that is starting his or her business, yet the benefits will amaze you. Set it as a priority in your life and block time out for you. Not only you are going to recuperate but you will gain so much energy momentum to move ahead. Meet people as you are having fun and notice opportunities that surround you.

As you see these little things can really help you in launching your business. Start using these strategies at the moment you commit in starting your business. Do not wait to long to ask for help, connect with people, identify your target audience and attract the people that need you and most importantly balance a life of laughter, fun and self-care.

By Carole Nicolaides ã Copyright 2000