Chapter 4 explored the process of establishing your business. You were
guided to envisioning your business concept. We then defined business
terms. We then discussed naming your business. We discussed the creation
of your business website and logo. We defined legal methods of protection
for your business and its ideas. We then explored deciding on a specialty
for your business, as well as the services you want to provide for your
business. We defined what DBA is, along with other terms. We explained
the process of obtaining a business license. We established a
communications record. Lastly, we discussed the different types of business
entities. The following exercises will help reinforce the concepts presented
in the textbook.
Key Terms
Vision
A vision statement is a company’s road map, indicating what the company wants to become by setting a defined direction for the company’s growth. An aspirational description of what an organization would like to achieve or accomplish. How a company wishes to be viewed.
Mission
A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.A mission statement should explain how a company intends to achieve its vision.
Philosophy
The philosophy of a company considers the fundamental principles that underlie the formation and operation of a company’s enterprise; the nature and purpose of a company, and the moral obligations that pertain to it. A company philosophy is a guiding belief as to how the company behaves as it carries out its mission to achieve its vision.
Core Values
The core values are the fundamental beliefs of an organization. These values are guiding principles that dictate the behavior expected of everyone employed with the organization. The core values are a set of values that the whole organization demonstrates through its people. The core values are the principles by which the vision is achieved.
Motto
A business motto is an important symbol of a company. A motto is the purpose for the company and an expression of the company’s culture.The simpler that you can keep the business motto, the easier it will be for people to remember. You can also use the motto as an expression to brand your company.It is a simple statement that is permanent & reflects the company’s beliefs.
Slogan
A statement that changes with the times. It is meant to provide a summary of a company and its services. A slogan is usually more about the product or service, is more flexible and is often utilized in advertising campaigns, where as a motto or tagline is an expression of the company and its beliefs.When written well, a slogan instantly evokes emotions and ideas and associates them with a brand.Good slogans are also easily remembered and can become part of the cultural landscape of a society.
Patent
A patent is a form of legal protection that provides a person or business with exclusive rights for making, using or selling a concept or invention and excludes others from doing the same for the duration of the patent. A patent is attainable for any not idea or invention, even if it is on something already patented. For example, if there is a patent on a type of computer software, and you design a better more efficient version of that software, your design can then be patented.The major distinction with this form of protection is that all patents are registered with the U.S. Patent Office and placed in the public domain for all to see and use.
Copyright
A copyright is a form of legal protection given to creators of “original works of authorship.” A copyright protects original works of authorship including literary, dramatic, musical, and artistic works, such as poetry, novels, movies, songs, computer software, and architecture.The duration of copyright protection depends on several factors. For works created by an individual, protection lasts for the life of the author, plus 70 years.
Trademark
A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others. Unlike patents and copyrights, trademarks do not expire after a set term of years. Trademark rights come from actual “use”. A trademark requires 4 major steps.
SBA
an autonomous U.S. government agency established in 1953 to bolster and promote the economy in general by providing assistance to small businesses. One of the largest functions of the SBA is the provision of counseling to aid individuals trying to start and grow businesses.
DBA
“Doing Business As” is the operating name of a company, as opposed to the legal name of the company. Some states require DBA or fictitious business name filings to be made for the protection of consumers conducting business with the entity.
Corporate Bylaws
A detailed set of rules adopted by a corporation’s board of directors after the company has been incorporated. They are an important legal document for a corporation to have in place as they specify its internal management structure and how it will be run.
Board of Directors
a team of people elected by a corporation’s shareholders to represent the shareholders’ interests and ensure that the company’s management acts on their behalf. The head of the board of directors is the chairman of the board.
Communications Record Keeping
The process of logging contact information of agency, organization, business, or other contact related to the development and establishment of your business.
ICANN
The Internet Corporation for Assigned Names and Numbers is a nonprofit organization responsible for coordinating the maintenance and procedures of several databases related to the namespaces and numerical spaces of the Internet, ensuring the network’s stable and secure operation.
DNS
The Domain Name System associates various information with domain names assigned to each of the participating entities. Most prominently, it translates more readily memorized domain names to the numerical IP addresses needed for locating and identifying computer services and devices with the underlying network protocols.
Expected Outcomes
Have established a business concept
Have defined your business
Establish a business name
Have created a business website and logo
Understand the legal methods of protecting your business entity creations
Have decided what specialty you are going to have for your business
Have decided what services you are going to have for your business
Understand different business terms
Understand the process of obtaining a business license
Have started a communication record
Understand the different types of business entities
Key Concepts
Your business concept derives from what you want.
Your vision is what the company wants to achieve
Your mission is what the company does to achieve the vision
Your philosophy is why the company does what it does
Your core values are principles by which the vision is achieved
Your motto is permanent & reflects the company’s belief
Your slogan changes with the times. Describes a product or summarizes services.
Most commerce based websites use .com.
ICANN manages DNS
Web engineers can develop websites that are user friendly and easy to navigate
Your business should establish with an email server such as GSuite
Patents are a legally protected inventions in the public domain
Copyrights protect artistic and creative works
Trademarks identify a business, its products, or its services
Trade secrets are a formula, idea, or system of working unique to a business and protected from public disclosure
Your business specialty will determine multiple areas of its development including its tone, equipment, expenses, services, and customer demographic.
Keeping a communication record from the onset will keep all contacts well organized and prevent confusion and complications in the future.
A DBA is what you call your business in the everyday versus the registered name you filed the business under.
The business entity you choose will determine the manner in which you file taxes. You should consult your accountant before choosing a business entity type.
Your business will need to establish its own bylaws; these are the rules of the business.
The Board of Directors is the primary governing body of an organization that has multiparty investors or other financial stakes in a company.
Business record keeping follows communications record keeping in its importance of organizing vendor and government encounters.
The number and types of bank accounts should reflect your business needs.In general 4 accounts are recommended: deposits only,business expenses, personal expenses, and business savings.
Be sure the account for each business need can perform the tasks you will require it to perform, such as wire transfers or no monthly fees.
Chapter Slogans
What do you want?
You can’t do it alone.
Nothing’s written in stone.
THINGS TO CONSIDER
What specialty do you want for your business?
What services do you want to offer?
Which business entity type do you want to establish?
What do you want to name your business?
Do you want a DBA?
What is your business vision?
What is your business mission?
What is your business philosophy?
What are your business core values?
What is your business motto?
What is your business slogan?
POUND THE PAVEMENT
Meet with your accountant and business attorney to discuss what you are planning for your business. They can help advise you as to which business entity and which tax filing is most advantageous for you based on what you want to do with your business.
