Business Information for Entrepreneurs by an Entrepreneur

The majority of identity theft schemes focus on the collection of personal identification. Criminals specifically take advantage of individuals who have extensive credit lines and large reserves of cash on hand. This makes small business owners especially vulnerable. Small business owners often times have access to lines of credit in a variety of different capacities, as well as cold hard cash onsite or in reserve.

Entrepreneurs need to exercise extreme caution when it comes to protecting information about personal identity, financial matters and the overall integrity of the business. Here are some practical tips to help protect your small business from identity theft:

Watch What Goes in the Trash. As the saying goes, one man's garbage is another man's gold. Identity thieves are especially adept at collecting pertinent information out of dumpsters. Nothing should be put in the trash that contains information like bank account numbers, social security numbers, or any other important financial information that should be protected. Invest in a good shredder and instate company policies requiring employees to use them as necessary. This is one of the easiest ways to protect your business.

Monitor Credit Reports. Another simple way to protect small businesses from identity theft is to perform biannual checks of credit reports. Often times, a small business will be associated with social security number of a business proprietor. In that case, it is important to get a credit report and look for personal or business-related discrepancies.

Use an EIN. An employer identification number (EIN) is a unique tax ID number that business owners can use in lieu of a social security number. The IRS issues them for free, and it is much safer than using a sole proprietor's social security number.

Protect Electronic Data. Some identity thieves are also skill computer hackers. This means that your electronic files are subject to breaches of security. Take steps to ensure that the virus protection and firewall software on your company computers is kept up to date and in working order. Set up your protective software to perform scans daily. Password protection is another simple measure that can enhance security of electronic data. Information is less likely to fall into the wrong hands if all company computers require a username and password for access.

Protecting a small business from identity theft isn't rocket science, but it does involve careful planning and taking targeted steps to avoid falling victim. Always protect information about your business just like you would protect your own personal information, and you'll be well on your way to thwarting any attempt at small business identity theft.

The business world grows more and more competitive by the minute. Standing out and getting recognition is a challenge that many small business owners struggle with each day. Corporate competitors make it increasingly difficult to offer all the products and services that consumers demand at affordable prices.

How can small businesses differentiate themselves from brand name corporate competitors? Just like the recent "going green" trend in business, "going local" can transform the way that small business operate and set them apart from big chain stores. Here are a few ways that "going local" can benefit small businesses:

Treat Customers Right. Small businesses offer more personalized service to customers. There is something to be said when you can walk into a grocery store and the cashier knows your name. Hiring local employees to serve customers is a good way to start building meaningful, customer-centered relationships. It is also important to go above and beyond the call of duty to meet customer needs. This is relatively simple to initiate, yet will fuel word of mouth at the grassroots level in the small business community.

Build Relationships. Stocking your shelves and resupplying your office with goods from local vendors is a great way to build relationships in the community. For example, a restaurant owner who buys produce from a local farmer creates a unique bond that has the potential to last a lifetime. In addition, the restaurant owner is contributing to the sustainability of the farm, therefore enabling further growth and development in the community. The model of local, sustainable relationships is what has propelled many restaurants, such as the famous Chez Panisse, into international limelight.

Save on Time & Money. While other vendors and suppliers may feature lower prices on goods, the cost of traveling across town and/or paying shipping expenses add up quickly. If you weigh the price against the cost of procuring the items, it is likely that you will find some extra savings when you buy local. Time is money, and a great deal of time can be saved by buying products locally.

The economic recession has made things increasingly difficult for small business owners. Now more than ever, going local can help restore normalcy. The local trend is growing just as fast as the going green trend did. It's time to reach out and help build sustainability in local communities - and watch your bottom line grow.

Disaster can strike at any moment, and small businesses are at a significant risk during times of turmoil. The best way to prepare for any disaster is to expect the unexpected. An important part of planning to manage a disaster is developing a plan of action, long before any sort of disaster occurs. There are three important components that should be included in a small business disaster plan:

• Protecting Human Resources. Human resources are the most precious entities that your small business has. The safety of employees should be considered first and foremost in a disaster plan. This portion of the planning includes evacuation procedures, notifying family members, and keeping accurate contact information on file for every employee.

• Protecting Physical Resources. The second most critical element of your small business is the physical property that allows you to do business every day. From computers to office furniture and building structures, physical resources are costly to replace. This portion of disaster planning should include a dependable backup computer system, archiving of data and information, and proper insurance coverage for the building and its contents.

• Planning for the Business Community. If disaster strikes, it will have a greater overall impact on the business community. Your suppliers may fail to deliver key items in the event of a disaster; therefore, you need a backup plan for resupplying and for making sure that you can produce deliverables for your own customers.

Small business owners are not alone. There are many organizations, such as the Red Cross and National Guard, which provide training, support and planning advice right in your local area. Another valuable resource is the Small Business Association, who features step-by-step instructions and tips for disaster preparedness. The U.S. government also features a host of interactive online tools that are available at Ready.gov to help families and businesses prepare for any disaster.

Online resources regarding disaster preparedness are available to all types of business owners free of charge. There is no excuse for failing to access these free resources to protect your small business and employees. From natural disasters to pandemic outbreaks and hostage situations, every business needs to develop a plan of action.