Startup entrepreneurs may have started their business for the right reason, of having the passion for creating a product; or of offering a service that they believe can fill a void in the marketplace.
However, there are challenges they need to face once they are in the thick of things in the business world. Proper management of finances, control over procurement activities, marketing and selling to the right audience. In today’s business environment, startup business owners must conform with the times by conducting market research and analysis of customer data in order to thrive and survive.
Otherwise, they are likely to count as among the 20% of startup enterprises that folded during the first year of operation, which the Small Business Administration (SMBA) reported in its 2019 statistics. Time and again, the SMBA has stressed the importance of having a business plan not only for purposes of satisfying a loan documentation requirement, but also as fundamental guide when running a business.
There are free business plan samples and templates available online; but simply modifying a sample just for show, and not to serve its fundamental purpose, will eventually prove to be bad for the startup business, especially during the first year. Mainly because business plans to be really effective, must be close to what is real and must be founded on verified information.
What most professional business plan writers do in order to achieve a realistic plan is to conduct analyses, not only of the market but also of the competition. They gather current and accurate data about the financial needs of the business so they can make educated projections and forecasts.
Another aspect assessed by seasoned business plan writers are the potential problems that a business could face. This is important because they need to have viable solutions in place in case potential problems become a reality.
Since our main topic is about law, we will mention some government laws that would impact a business, in case there are related pending legislations that will affect the status quo.
Examples of Government Laws that Can Impact Businesses with the Passing of New Legislations
The Federal Tax Code
The Federal Tax Code is often the subject of amendments, revisions or additions. They can be changes that will affect Income Tax and its related Estimated Tax, or Employment Tax that includes employer’s contributions for Social Security, Medicare and Unemployment Tax; or Excise Tax, which the IRS simply explains as the tax included in the price of a product or service.
Labor Laws
Changes in labor laws could cover employment regulations over working hours and wages including overtime pay. There are also labor laws that promulgate equal opportunity, employees leaves, pension and welfare benefits, as well as workplace health and safety, Some labor laws also govern work arrangements entered with independent contractors.
The Affordable Care Act
Small businesses with less than 50 full-time employees are not included in the mandate to provide employees with health care insurance coverage. However, those mandated to do so can also qualify for the Small Business Health Care Tax Credit. Any amendments to this Act can affect both large and small businesses.
