Startup Essentials - The 5 Best Ways to Spend Money When Starting a Business

Finding ways to spend startup capital is easy, but there are a few things that should be included in every new business's startup budget. The top five are:

Startup Essential #1 -- Protecting Your Business

Setting up your legal obligations and protections correctly from the start is critical to building a successful company. It can be tempting to put off registering your entity (LLC or Corp) or paying for a business license until you start making money, but delaying is not the best option. Not only do those expenses keep you out of potential trouble, they also protect your personal assets from the liabilities of the business. Business insurance is another critical protection for any startup. Even home-based, one-person businesses should look in to small business insurance. The premiums should be pretty reasonable, and the protection can be invaluable if something goes wrong. Starting without setting up the right protections can also be a slippery slope...if you are okay for a month without paying those expenses, why not two? Or six? The longer you delay, the more you put your business at risk. Do your homework so you know exactly what is required for your business, and get it all squared away before opening day.

The total cost of registering your business depends on the state you are in. Entity registration ranges from a couple hundred dollars total to around one thousand, if your state (like California) includes exorbitant franchise fees. Business licenses and tax certificates are generally pretty cheap, under $100 in most areas. Business insurance varies greatly depending on your industry and coverage limits.

Startup Essential #2 -- Small Business Software

Every modern business must have computers and the right software tools to minimize risk and maximize profitability. Without question, every small business should use a reputable accounting system. Peachtree is the best on the market for those who plan to grow the business. Don't rely on the freebie downloadable versions any longer than absolutely necessary as they do not include the accounting tools that help to track and analyze profitability. In addition, your business should have an office suite, such as Microsoft Office, that includes a word processor, spreadsheet, and other programs. Contact management software is also important -- your best marketing returns will come from the customer list you build yourself. ACT! is the best choice and is relatively easy to use. Other useful programs include office form templates, employee management software, and point-of-sale software that works with your Accounting system if you run a brick-and-mortar store.

Budget at least $500 to $1000 for the software you will need. Peachtree's basic small business program is around $200, ACT! around $230.

Startup Essential #3 -- Marketing Tools

Every business should plan to invest in at least two key marketing tools prior to startup -- business cards and an internet presence. Business cards are still the primary means of networking...even employees of the largest online businesses all have business cards. You can get a couple of hundred for free through several print shops, but they will go fast. Select a high-quality paper and be sure the design and logo impart the image you are trying to develop. A web presence is an absolute necessity. You will need to purchase a domain name and web hosting service, as well as select software to build your web pages. The website software has come a long way -- if you have basic computer skills, you can build a good website. This is not a place to scrimp and save. There are "free" web hosting services, but they are unreliable and flash built-in ads on your web pages. On the other hand, most businesses do not need a professional web designer to come up with a good site. Try the software and talk to the people you know...one entrepreneur we know mowed his web-savvy neighbor's lawn for him while the neighbor put together a basic website using the entrepreneur's software. Fair trade and everybody was happy.

Altogether, expect to spend at least $250 on just these marketing materials. Most businesses need to spend far more to market successfully, but business cards and a website are a good start.

Startup Essentials #4 -- Time-Management and Organization Tools

Every entrepreneur needs a system for managing time and staying organized. Your time will be divided randomly among 582 different things every day, so the more organized you are, the better. Start with a daily planner. Look for one that is customizable (like the Uncalendar) so that you can develop the best time-management system for you. Develop a system for listing and prioritizing tasks and setting aside blocks of time to work on important elements of your business such as the marketing plan and managing the finances. Your planner should also include space to collect information about your business and competitors, your networking contacts, and any other critical data. A full-size (8 1/12 x 11) planner is far more effective than the smaller ones. Get started using your planner as soon as possible so that the habit is ingrained by the time you are buried under business responsibilities! Also include tools for keeping paperwork, supplies, and product organized...you will have too much to do to waste time searching for what you need!

A good time-management system should run about $50 to $100, organizational tools will vary (file cabinets, etc.).

Startup Essentials #5 -- Information

As the owner, you will need to know all the details of what you are doing. From the legal setup to your target market, from your product specs to your store or website's traffic patterns. First-time entrepreneurs tend to underestimate how much time and effort it will take to get up to speed on all of the aspects of business ownership. But, taking control by attending to the details yourself will reduce your risk and increase your chances of great success. Once your venture is up and running, the learning should continue. Stay on top of news and innovations in your industry, read biographies of successful entrepreneurs, read up on the latest marketing opportunities. While it is easy to answer a specific question through the free content available on the web, most entrepreneurs will need to spend some cash for tools (books, trade associations) to ensure the business gets off to the right start by covering every critical aspect of a successful startup.

Include at least a few hundred dollars into your startup budget, but the amount will vary depending on the type of business you are starting and the depth of planning you will do. Remember that the better you plan, the lower your risk. Add a monthly budget amount for continuing education such as books, industry magazines, and the like.

About the Author - K. MacKillop, a serial entrepreneur, is founder of LaunchX and authors a small business startup blog. The LaunchX System includes step-by-step business plan instructions, small business software & more, to help entrepreneurs start a business based on their idea.

Computer Software & Business Method Patents In India

India, like European Union, does not allow patents for inventions related to mathematical or business method or computer programme "per se" or algorithms. The relevant provision under the Indian Patents Act reads as under:

CHAPTER II

INVENTIONS NOT PATENTABLE

3. What are not inventions.- the following are not inventions within the meaning of this act,--

(k) a mathematical or business method or computer programme per se or algorithms;

The Section makes it amply clear that algorithms are not patentable in India. Though as per the Indian Patent Act, mathematical method, business method or computer programme per se are not allowed. The draft patent manual defines how inventions pertaining to above should be handled by the Indian Examiners and lays down parameters under which such inventions shall be patentable in India.

The proposed patent manual defines computer implemented invention as any invention the performance of which involves the use of computer, computer network or other programmable apparatus, or an invention one or more features which are realized wholly or partially by means of a computer programme/ programmes. Further, patent manual defines Computer programmes as a set of instructions for controlling a sequence of operations of a data processing system which closely resembles a mathematical method. Computer programme may be expressed in various forms e.g., a series of verbal statements, a flowchart, an algorithm, or other coded form and maybe presented in a form suitable for direct entry into a particular computer, or may require transcription into a different format (computer language). It may merely be written on paper or recorded on some machine readable medium such as magnetic tape or disc or optically scanned record, or it maybe permanently recorded in a control store forming part of a computer.

Though proposed patent manual emphasises on disclosure of mode of operation for inventions involving apparatus and necessary sequence of steps for process related invention, yet it lays down categorically that a hardware implementation performing a novel function is not patentable if that particular hardware system is known or is obvious irrespective of the function performed. It manifests that for such kind of invention insertion of method steps in apparatus or some dependency shall be required to make them non-obvious.

The patent manual has also broadly categorised inventions related to computer/ computer programmes as below:

(a) Method/process;

(b) Apparatus/system; and

(c) Computer program product

METHOD/PROCESS:

Further to make the invention patentable in India, the method claim should clearly define the steps involved in carrying out the invention and should have a technical character. In other words, it should solve a technical problem. The claims should incorporate the details regarding the mode of the implementation of the invention via. hardware or software, for better clarity. The claim orienting towards a "process/method" should contain a hardware or machine limitation. Technical applicability of the software claimed as a process or method claim, is required to be defined in relation with the particular hardware components. Thus, the "software per se" is differentiated from the software having its technical application in the industry. Therefore, as per the patent manual, a claim directed to a technical process which process is carried out under the control of a programme (whether by means of hardware or software), cannot be regarded as relating to a computer programme as such.

An example is also cited in the proposed patent manual on what kind of claims shall be allowable.

"a method for processing seismic data, comprising the steps of collecting the time varying seismic detector output signals for a plurality of seismic sensors placed in a cable."

"Here the signals are collected from a definite recited structure and hence allowable."

What is significant here is that patent office is not emphasising on embedment of hardware components in the method claims, as the only condition for patentability of method claims, but requires it as a machine/hardware limitation. Therefore the essential of method claims are:

a) It should solve a technical problem;

b) It should incorporate the details regarding the mode of the implementation of the invention via. hardware or software, for better clarity; and

c) It should contain a hardware or machine limitation.

APPARATUS/SYSTEM:

As per the proposed patent manual the apparatus claim should clearly define the inventive constructional hardware features. This could act as a limitation, as ordinarily hardware or machine don't involve novel or inventive constructional feature but are programmed to perform in a novel or inventive way. Further, it suggests that the claim for an apparatus should incorporate a "process limitation" for an apparatus, where "limitation" means defining the specific application and not the general application. As a general rule, a novel solution to a problem relating to the internal operations of a computer, although comprising a program or subroutine, will necessarily involve technological features of the computer hardware or the manner in which it operates and hence may be patentable.

An example is also cited as to what manner process limitation shall be inserted in the claim. For example, in a computer comprising means for storing signal data and a first resistor for storing data, the clause starting with "for" describes the function or process carried out by the apparatus, and form the part of "process limitation" here.

Therefore the essential of apparatus/system claims are:

a) It should clearly define the inventive constructional hardware features; and

b) It should incorporate a "process limitation" for an apparatus, where "limitation" means defining the specific application and not the general application.

COMPUTER PROGRAM PRODUCT:

A careful interpretation and analysis of the provision makes it clear that it is computer programme per se that are not allowed as they are subject matter of copyright in India. The reason for not considering the software as patentable subject matter was to avoid duality of protection available to software. But subject matter of copyright can be only their literal presentation of software which includes coding decoding or algorithm form and more precisely it is their algorithms form that the Indian Patents Act does not consider the patentable subject matter.

The proposed patent manual considers the claims relating to software programme product as nothing but computer programme per se simply expressed on a computer readable storage medium and as such are not allowable. Therefore requires something tangible to bring them out of provisions of Section 3 (K) of the Indian Patents Act i.e. embedding of hardware components.

For example, if the new feature comprises a set of instructions (programme) designed to control a known computer to cause it to perform desired operations, without special adoption or modification of its hardware or organization, then no matter whether claimed as "a computer arranged to operate etc" or as "a method of operating a computer", etc., is not patentable and hence excluded from patentability.

It creates an ambiguity as whether a patent shall be allowed where all criteria for method or process claims as required by patent office are met. The only distinction from the previous categories could be that in present category "mode of implementation of the invention" is not mentioned in the claim, which in any case should not change the very character of the invention.

Patent manual further clarifies that the claim might stipulate that the instructions were encoded in a particular way on a particular known medium but this would not affect the issue. e.g., A program to evaluate the value of PI or to find the square root of a number are held not allowable. However, an invention consisting of hardware along with software or computer program in order to perform the function of the hardware may be considered patentable. e.g., embedded systems.

Therefore, claims must have few hardware components as an essential part of the invention and some form of interdependence should be shown between the software and hardware components. Hence, claims relating to methods utilising computer programs for its operation are patentable, as long as they do not claim computer programs itself.

Therefore the essential of computer program product claims are:

a) Must involve hardware components;

b) Computer programmes should perform function of the hardware; and

c) There should be interdependence between the software and hardware components

BUSINESS METHOD:

In history of inventions relating to business methods filed in India, major reasons for negating the invention was lack of industrial application, which is one of the major condition to qualify as an invention and consideration whether same in non-patentable being business method may be considered only if the subject is first found to be invention.

Invention is defined under Section 2(1)(j) of the Indian Patents Act, 1970 and reads as follow:-

"Invention" means a new product or process involving an inventive step and capable of industrial application."

In Melia's Application (BL O/153/92), where an application relating to a scheme for exchanging all or part of a prison sentence for corporal punishment was held to lack industrial applicability and also to be a method for doing business.

In John Lahiri Khan's Application (BL O/356/06) a method for effecting introductions with a view to making friends was held not to be industrially applicable, even though it could be carried out by a commercial enterprise. It was also found to be non-patentable as a method of doing business.

"Capable of industrial application" is defined under Section 2(1)(ac) of the Indian Patents Act, 1970 and reads as follow:-

"Capable of industrial application", in relation to an invention, means that the invention is capable of being made or used in an industry.

In re: Bernard Bilski, US Federal Court of appeal in its judgement dated October 30, 2008 upheld that business methods cannot be patented. The court observed that the sole analysis for determining whether an invention is patentable should be the "machine-or- transformation test" i.e. requiring involvement of a machine (like in case of computer program product) or transforming an article (for details refer to case law).

Though there are no specific, guidelines in proposed draft manual as to how to treat inventions pertaining to business methods, the requirements for patentability as in case of computer programmes or mathematical methods becomes of great significance and could be relied.

Therefore the business method per se may not be patentable, but its technical implication can be a subject matter of patentable invention.

MATHEMATICAL METHOD:

A mathematical method is one which is carried out on numbers and provides a result in numerical form (the mathematical method or algorithm therefore being merely an abstract concept prescribing how to operate on the numbers) and not patentable. However, its application may be patentable if performed function is technical process and claim is directed to such technical process not the mathematical method.

Reference has been made to Vicom/Computer-related invention [1987] 1 OJEPO 14 (T208/84) wherein the invention concerned a mathematical method for manipulating data representing an image, leading to an enhanced digital image. Claims to a method of digitally filtering data performed on a conventional general purpose computer were rejected, since those claims were held to define an abstract concept not distinguished from a mathematical method. However, claims to a method of image processing which used the mathematical method to operate on numbers representing an image can be allowed. The reasoning was that the image processing performed was a technical (i.e. non- excluded) process which related to technical quality of the image and that a claim directed to a technical process in which the method used does not seek protection for the mathematical method as such. Therefore the allowable claims as such went beyond a mathematical method.

Therefore anyone interested in protecting an invention in India or for any part of the world has to more careful at the time of filing basic application (priority application). The specification as well as claims should be modified in pretext of above before filing of patent application or else the description must have sufficient support for modification of the claims to include hardware components. One of the safest criteria deployed by the Examiner to find whether any hardware features are involved in the invention is to require inclusion of reference numerals for hardware components in the description as well as claims.

Author is an Advocate and Registered Patent And Trademark Attorney with Aswal Associates and handles IPR division of the firm and is having the vast experience of having being associated with various premier IPR firms of India in the past. The author is also a member of APAA and can be reached at sudhir@aswal.com.

Essential Software Needed to Run a Successful Internet Business

The first and most important bit of software you will need to run a successful internet business is a quality email program. This should enable you to receive vast amounts of emails. It must be easy to organize your mail with a filter option that allows you to filter messages to specific mail boxes. This feature could save you a great deal of time.

One of the most important steps in developing a successful internet business is to collect your visitor's email addresses. This mailing list program should allow you to send your potential customers personalized messages.

In order to design your website you will need a good HTML Editor. Your website is the shop window that your visitor looks at when he visits your site, so you want it to look good.

Note Pad is a excellent Text Editor, but it cannot handle large files and you will need one that has a variety of uses such as writing HTML, editing scripts and large files, formatting your text, including spell checker and thesaurus.

Zip/Unzip programs are used to compress and send electronic files over the internet. Rather than down loading several different files one by one, you can download them in a Zip file all at once. This can be easily opened and extracted with a Zip/Unzip software program.

Graphic Design is a frightening subject for many, but you do have to learn some basic design techniques to design a successful website. Professional designers are very expensive to use when you are starting out.

A File Transfer Protocol program better known as FTP. You can upload and download files that are stored at your hosting company.

An eBook Brander allows you to brand an e book for promotional purposes with your company name, affiliate ID or whatever you would like put in for your give away campaign.

When testing and tracking your marketing strategies an Ad Tracker is essential. This gives you an idea of how your product is performing.

If you really want to be successful, you need to write your own e book. With today's advanced technology you can self-publish your own book at a very low cost. E book software allows you to insert live links, graphics, forms, Javascript, embed video and has search capabilities.

If you are serious about building an internet business these programs are a basic guideline to get started.

There are many free software programs available on the internet and if you are starting out with a limited budget you should use them until you start making money.

If you are interested in starting your own successful internet business go to my site and find out how.
http://michaelpepper-online.info

Essential Software For the Home Business Owner

Starting a home business or thinking about starting one? Here are some suggestions for software you need to have on your computer in order to be successful.

Office Suite

Every business must have an office software suite. Luckily, there are numerous solutions at vastly different price points. First, consider the most widely used office suite, Microsoft Office. MS Office includes essential productivity programs such as a word processor, spreadsheet, presentation software and in certain versions, a website design program, as well as other accessories and programs. Microsoft Office is the most expensive solution, but there are other office suites such as OpenOffice. OpenOffice is a free solution which includes a word processor, spreadsheet, presentation software and a drawing program. Another option is an online office suite, like Google Docs, which includes a spreadsheet, word processor and presentation application. With Google Docs, multiple users can collaborate to work on the same documents, even at the same time.

Business Plan Software

For anyone starting any business, business plan software is essential. Popular business planning programs include PlanMagic, BizPlanBuilder and Business Plan Pro. Having a good business plan helps you zero in on your target market, estimate your costs, weigh risks, create a mission statement, define goals and much more.

Accounting Software

Accounting software is another absolute essential for any home business. Good accounting software will streamline all of your accounting related tasks including paying bills, invoicing, managing customer information, budgeting, checking, estimates and more. Top accounting software programs include QuickBooks and PeachTree Accounting. These programs also make tax season much easier, as some tax software allows you to import your data from the most popular accounting programs.

Utilities

There are also some utilities that will be useful, even essential, for any business owner. For zipping, unzipping and archiving files, a solution like WinZip or WinRAR is a must. In addition, don't forget security programs like a strong anti-virus, anti-spyware and a firewall. A calendar or planner program will also come in handy, helping the home business owner to plan and organize their tasks efficiently.

Graphics

Just about every home business owner will need a good graphics program. PhotoShop is the industry standard in this field. However, if you don't need that kind of professional graphics power, there are better options. Consider PhotoShop Express, which is an online version of PhotoShop, but this version is free. Other options include Gimp, a completely free open source graphics editor and Irfanview, an easier to use and much more basic program that will come in handy for many simpler graphical tasks.

Backup Software

If you have any important business data on your computer, whether it is your sales stats, login information, databases, spreadsheets, word documents or business emails, you simply must perform regular backups. Some popular programs for this task include Acronis True Image and Norton Save & Restore. These programs back up your data by imaging your entire hard disk. Another solution is to use one of the many online backup solutions such as iBackup, Carbonite and iDrive. These solutions back up your data by storing it on one of their servers.

Lydia Quinn writes for Best ITV Team, a business opportunity [http://www.bestitvteam.com/] which makes use of infomercial marketing. Visit us at: [http://www.bestitvteam.com/]

The Birth of a Successful Internet Business: Part Three of Ten -- Essential Software

An essential part of running a successful Internet business is quality software. Software will play a major roll in your success. You must be willing to invest in the software you'll need to assist you in running your business.

Email Program

The first and most important software you'll need is a quality email program. Although most Internet Service Providers include email accounts for their customers, these accounts aren't adequate for an Internet business -- especially if you get a large amount of email. Not only do the email addresses contain your ISP's name, but they are also very limited on features and options.

There are many email programs available on the Internet. However, the best program I've found is Eudora. Eudora is a standalone email program that works with any ISP. It will enable you to easily organize your email by filtering your messages into specific mailboxes. This feature alone can save you a great deal of time. What's more, your email address will be your own domain -- not someone else's.

Eudora

http://www.eudora.com

Mailing List Software

Collecting your visitors' email address is one of the most important parts of developing a successful Internet business. You must develop a database of potential customers if you truly want to succeed. Publishing an ezine is a great way to accomplish this. In order to do so, you must have a good mailing list program that will enable you to send your potential customers personalized messages.

Mailloop

http://www.web-source.net

Group Mail

http://www.web-source.net

If you're using a software program that resides on your computer, you'll also need a good form processing script to enable your visitors to subscribe:

Master Form

http://www.web-source.net

If you're an American Online customer, you won't be able to use a software program that runs on your computer. You'll need to use a program that runs with your web browser.

1-2-All Broadcast Email

http://www.activecampaign.com/

Subscribe Me

http://www.siteinteractive.com/subpro/

HTML Editor

Your website is the storefront of your business and is one of the most important factors in determining your success. In order to design your website, you'll need to get a good HTML editor.

Coffee Cup

http://www.coffeecup.com/editor/

DreamWeaver

http://www.macromedia.com/software/dreamweaver/

HotDog

[http://www.sausagetools.com/]

HomeSite

http://www.allaire.com/Products/HomeSite

Microsoft Frontpage

[http://www.microsoft.com/frontpage]

Before you begin the actual design process, I highly recommend that you download and install two web browsers -- Internet Explorer and Netscape Navigator. These are the two most widely used browsers on the Internet. However, they are not created equally. Your page might look great when viewed through Internet Explorer, but may not display well when viewed through Navigator. It is very important that you view your website through both browsers, and design your pages accordingly.

Internet Explorer

http://www.microsoft.com/windows/ie/default.asp

Netscape Navigator

[http://home.netscape.com/computing/download/index.html]

Graphics Editor

Graphic design is an intimidating subject for many Internet entrepreneurs. However, most of us must learn some basic design techniques in order to avoid the high costs of hiring a professional designer.

In order to create or edit your graphics, you'll need to invest in a good graphics program. The most popular program used by Internet marketers is Paint Shop Pro. This powerful program is the only program you'll need to design professional looking graphics.

Paint Shop Pro

[http://www.jasc.com/]

Zip/Unzip Program

Zip files are used to compress and transport file archives over the Internet. It is the preferred method used for electronic file distribution, as rather than downloading several different files, you can simply download one Zip file. In addition, the download time will be minimized, as the files within the Zip archive are compressed.

Once a Zip file is downloaded, it can be easily opened and extracted (unzipped) with a Zip/Unzip software program.

Although there are many Zip software programs available on the Internet, WinZip is the most popular. WinZip makes working with file archives simple.

WinZip

http://www.winzip.com/download.htm

FTP Program

File Transfer Protocol, better known as FTP, is a procedure used to upload and download files to and from your web server.

In order to use FTP, you'll need to download and install a software program on your computer. The most widely used FTP program is WS FTP Pro.

WS FTP

http://www.wsftp.com

Text Editor

Text editors have a variety of uses such as writing HTML, editing scripts, and writing EzineArticles -- just to name a few. NotePad is an excellent text editor and is most likely already installed on your computer. However, it can't handle large files and is better suited for smaller files. You may find that you'd like an editor that is a little more powerful. I use a great program called NoteTab Pro. This powerful editor will enable you to edit large files, format your text, convert your text to HTML, and even includes a spellchecker and thesaurus.

NoteTab Pro

http://www.notetab.com/

Ad Tracking

Testing and tracking your marketing strategies is an essential part of your success. I recommend using a great script called LnkinLite. It's simple to use and will assist you in tracking all of your strategies.

LnkinLite

http://www.dtp-aus.com/cgiscript/lnkinlte.shtml

Financial Management

In order to keep track of your business financial matters, you'll need to invest in a good financial management software. The best program I've found is Quicken. However, as this program is very difficult to use and understand, you may want to use a spreadsheet program, such as Microsoft Excel, and set up your own system.

Quicken

http://www.quicken.com

Tax Program

Filing your taxes and keeping up with the ever-changing tax laws can be very intimidating. However, if you keep good records and use a good tax program, you can file your taxes with ease. I highly recommend using Turbo Tax. This great program will make the process a lot easier and even enable you to file your taxes electronically. What's more, it will even allow you to import your Quicken files.

Turbo Tax

http://www.turbotax.com

Although this list of software is far from complete, it will provide you with a basic guideline to get you started.

If you're serious about your business and you really want to succeed, purchasing software is an absolute must. Do your homework and select software that best suits your needs. It will be well worth the investment.

Copyright © Shelley Lowery

About the Author:

Shelley Lowery is the author of the acclaimed web design course, "Web Design Mastery" (www.webdesignmastery.com) and "eBook Starter - Give Your eBooks the look and feel of a REAL book" (www.ebookstarter.com)

Visit www.Web-Source.net to sign up for a complimentary subscription to eTips and receive a copy of Shelley's acclaimed ebook, "Killer Internet Marketing Strategies."

You have permission to publish this article electronically, in print, in your ebook, or on your web site, free of charge, as long as the author bylines are included.

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