How to Start a Business in the USA - Essay Example

How to start a business in USA: Table of Contents: Introduction 2 Importance of intellectual property 2-3 Introduction: There are many obstacles faced by an individual who wishes to start a business from step one and has to go all the way through in the time ahead. Though one may have many riveting business concepts, applying them in practical life forms another story and may leave one highly anxious and infuriated about myriad different aspects. Mental preparation can also come in handy and save one from a lot of nasty pressures if the hardships and challenges become too big to tolerate amidst starting a business. In order to successfully implement a concept of retail pharmacy business, this paper strives to identify some basic steps which are required before any such activity could be started in USA. This paper will demonstrate how to start a business in Chicago, Illinois and also acts as a basic guideline for an individual who has yet to go through an actual implementation process. This paper is based on the research carried out to reveal the steps which are necessary to be taken when starting a retail pharmacy business in Chicago. Importance of intellectual property: The importance of intellectual property (IP) should be recognized thoroughly by a start-up business owner. IP is actually a legal concept and is sadly, poorly misunderstood by many people who wish to start their own businesses and think that this concept can only be appropriately applied by those people who are legal experts. Every enterprise, company or business organization should pay attention to IP. IP can help the owners at every stage of business development “from product development to product design, from service delivery to marketing, and from raising financial resources to exporting or expanding your business abroad” (World Intellectual Property Organization, n.d.). in order to maximize the benefits, business owners should know how to use the IP system. It is worth mentioning that in case IP being used belongs to others, then rights have to be acquired to use it by obtaining a license so that forthcoming disputes and litigation could be avoided by the novice individuals intent on establishing personal businesses. IP is also important to a business because it helps in copyright protection and get fair economic awards on grounds of a business’s individual creativity and product sales. Government requirements: Retail pharmacy is recognized as one of the mainstream profitable businesses in entire USA. But, area requirements should be deeply understood and assessed before implementing and operating any business concept, According to Woodfield (2012), State of Illinois Business Portal suggests that before starting up a business in Chicago, certain city, state, and federal requirements have to be fulfilled by an individual. Though he owner of a business has to get him/herself registered with the city, still “there are also state and federal hoops to jump through before you can open your doors” (Woodfield, 2012). However, the retail pharmacy business concept is exempted from obtaining Chicago city license. For that purpose, license from the Illinois Department of Financial and Professional Regulation is to be obtained by the owner (Cequea, 2012). First, a strategic and clear business plan has to explicitly written down to be shown in different registration offices later on. As Chicago distinguishes itself by being the third most populous city in USA, so the business plan should also contain a map for showing the official authorities as to how one wishes to make one’s desired business concept stand out among the rest. Chicago area-attorney and accountant, among other official authority members, have to be consulted first by an individual who is novice to the Chicago business scene. Afterwards, Federal Employer Identification Number (FEIN) should be applied for in order to get the business registered with the state of Illinois. Then one must get registered with federal government for tax purposes. The government regulations should be respected as they do not harm small businesses in USA in general and taxes are really not killing business owners in Chicago (Hall, 2011). In order to obtain a tax ID number, the business owner should get him/herself registered with the Illinois Department of Revenue (IDOR). Premises and lease: Katers (2012) suggests that as retail pharmacy business concept is one of the highest grossing businesses in USA, so business location should be chosen very carefully. In order to smoothly run a community drug store, location and resources hold extreme importance. Starting a retail pharmacy business in a neighborhood fraught with many independent drug stores should always be avoided. Retail pharmacy is rightly considered to be a highly competitive field and even if such a retail space is found which is not surrounded by already established pharmacies, obtaining a short-term lease still remains highly important in order to keep the financial burdens below the belt. Though extra cash should be reserved during the earlier stages, highs and lows almost always form an essential part of any business for which short-term lease always comes in handy. Lease is a legal agreement between an owner and lessee, which contains the rental amount according to the terms and condition of the lease. The lease time period can only be negotiated at the time of making a lease. The lowest asking price for retail properties in Chicago market was seen in October 2011 at $121.93 and “the median sale price for this month was the lowest it has been in three years” (LoopNet, 2012). Lease rates for retail properties are also seen to be at their lowest this month in Chicago metro area. “The average asking lease rate was $16.13 per square foot” (LoopNet, 2012). Banking: The concept of starting a business without the owner having a bank account to his name is impossible. A bank account should be first opened so that everyday business transactions could be performed. Once the bank account gets established subjected to eligibility, the options of government grants or financial help offered by bank for new businesses could be explored by the owners. Once all the above steps including government requirements, leasing, and opening a bank account are addressed, one last thing to do before the owners can start operating their businesses is to sort the overall finance and expenses. That includes about everything from shop rent and entire running cost associated with the shop to other expenditures like electricity bills, phone bills, internet bills, employee payment and council rates. One also must have extra cash reserved for those earlier difficult months when the business is struggling. Legal requirements: Legal requirements are different when the concept of retail pharmacy business is talked about. This step involves license and permit to operate a business and this can be the most critical point in the business. In case of a retail pharmacy business, no license is required from Chicago City Council, Illinois. However, a single mistake made on part of the business owner or recruited employees can cost a business fortune or even the business may be banned from operating. Starting a whole new process can be especially painful for a novice who has no idea or experience whatsoever about many crucially important details. Chicago City Council (CCC) is a state government body which deals with all the legal grants like license and permits required to operate businesses in Chicago. For the retail pharmacy business, city license is not required. It is clearly mentioned in many reports that all Chicago businesses should obtain city business licenses unless a particular business is exempted under Illinois State Law. There are also other kinds of business insurance which is highly recommended to protect the business from risks, theft and natural disasters. References: Cequea, A. (2012). How to Start a Retail Pharmacy Business in Chicago, Illinois. Retrieved from http://www.ehow.com/how_7246282_start-pharmacy-business-chicago_-illinois.html Hall, K. G. (2011, Sep 08). Regulations, taxes arent killing small business, owners say. Chicago Tribune. Retrieved from http://articles.chicagotribune.com/2011-09-08/business/ct-biz-0908-bf-small-biz-20110908_1_small-businesses-regulations-health-care Katers, N. (2012). What is Needed to Start a Pharmacy. Retrieved from http://www.ehow.com/how_4598145_what-needed-start-pharmacy.html LoopNet. (2012). Chicago, IL Market Trends. Retrieved from http://www.loopnet.com/Chicago_IL_Market-Trends Woodfield, M. (2012). How to Start a Small Business in Chicago. Retrieved from http://www.ehow.com/how_6659558_start-small-business-chicago.html World Intellectual Property Organization. (n.d.). Why is Intellectual Property Relevant to Your SME. Retrieved from http://www.wipo.int/sme/en/ip_business/importance/relevant.htm Read More