What happens if you have to dissolve your business? Just as setting up a business, dissolving a business has formal steps that are required to protect you from liability. If you're a corporation or LLC, you must file a Certificate of Dissolution with the Secretary of State. A corporation, though, is also required to publish its dissolution in a business publication to notify creditors of its closure. If the corporation complies with this requirement, creditors must notify the corporation within 120 days following the dissolution to demand any outstanding payment. If the corporation does not comply with this requirement, the creditor may continue to request payment for any debts for up to 3 years. An LLC may not have the publication requirement but instead always allows the 3 year window for creditors to pursue their monies. Make sure you know what needs to be done to ensure you get out of a business safely.
I recently learned of a company who was recently notified that it was infringing the patent of a similar (but different) product. After talking with a patent attorney colleague of mine, we learned that the original patent isn't for a product but rather the method of using the product. This means that the licensor would have to use her product the same way as the patented product to infringe -- unlikely. We also learned that this patent was a tough sell to the USPTO to begin with providing the licensor with some ammunition to fight back. It doesn't mean that the patent holder won't fight it but a fight is risky to the patent holder becuase the patent could be revoked. It does mean that the infringement notice didn't tell the whole story. This reiterates the importance of having experts serve where expertise is important!
I just saw the front of US News & World Report with the headline "Profiting from the Global Boom." I've been asked several times to describe what a successful business venture looks like -- most recently in my quote for Paul Casey's Small Business Innovator radio show. I have listed things like experience in the business, strong research, and business plan. I have also mentioned capitalizing on consumer or market trends. An important part of this, though, is knowing where consumer trends might pay off, such as the global boom and green living, and being able to put in place a concept that has a competitive advantage and strong financials. So, regardless of the concept (whether trendy or not), experience, research, and a business plan with a positive cash flow and profitability still offer the foundation for success.
I visited with a client this morning and we discussed how to grow a business and how not to let your business run you. Part of the challenge small businesses face is how to "let go" of certain day-to-day elements of the business. In order to grow, you must transfer the day-to-day details from your plate to others. This leads to all kinds of interesting problems -- finding the right "others" to transfer duties to and ensuring processes are in place so that training is simple. I counsel all clients to put processes in place early when they aren't too busy. Processes keep you sane when you do get busy and make bringing on new people much less time intensive. I spoke with another attorney recently who has a temporary employee. The attorney said, "This person is working out pretty well -- plus I don't have time to train someone new." Procedures ease this challenge and make it easier to train a new person if necessary. Getting things off your plate requires organization and management -- procedures give you both to enable you to work "on" your business with confidence that the stuff "in" your business is running smoothly.
This has also come up personally as I head out on vacation -- it takes a lot of time to ensure everything is taken care of while you're gone -- especially when you need to leave the business at home so as to come back from vacation refreshed and ready for action.
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