Give your company a distinct name

Dear Karen: The name I want to use for a small publishing firm is being used by a firm not in the publishing sector. Can I use it?

Answer: Pick a name not already in use. It will differentiate your firm and save you from legal conflict.

That said, if the other firm is in a completely unrelated category, and it's not a famous trademark, you'd probably be fine using the name, said Doug Wolf, co-chairman of the trademark group at Wolf, Greenfield & Sacks, an intellectual property law firm based in Boston.

But problems can arise if there's even remote overlap.

"A retail store using a trademark might overlap with a clothing manufacturer using the same mark," Wolf said. "A publishing company and a widget-maker would be OK, but if a mark is being used by a publisher and a blog, that could create confusion."

Price hikes should be a last resort

Dear Karen: I feel as if we are caught between rising expenses from suppliers and clients who are reluctant to spend. How can we stay in business without raising prices?

Answer: Small companies are indeed getting squeezed between rising energy costs and wholesale prices, and consumers spending less, said Keith Girard, a consultant at AllBusiness.com.

"Small businesses are typically the first to feel the squeeze and the last to raise prices because the market is dictated by their larger competitors," he said.

Don't fall to the temptation of cutting your marketing budget, Girard said. Save money by discounting excess inventory, cutting your salary or taking deferred compensation, and negotiating with your suppliers for a price break or extended payment schedule. Cut your energy use to reduce overhead as well as help the environment. Garner free publicity by supporting local events or writing a column for your local newspaper or trade journal.

And if you must raise prices, soften the blow by improving customer service, adding free delivery or offering an extended service contract.

Avoid starting up on personal debt

Dear Karen: I have several credit cards with no outstanding balance. Can I use them to start my company?

Answer: You can but it should be your last option. A business credit card can be used strategically to augment cash flow mid-month, but you'll have trouble building your business if you're carrying large balances at interest rates of 18% to 20%.

"If you carry large balances on your personal credit cards, you'll be in debt paying interest for years. I've seen it way too often, and then the entrepreneur can't get a business loan because his personal credit is all screwed up," said David Gass, chief executive of Business Credit Services Inc. in Las Vegas.

Better to apply for a small-business loan or seek out investors to help fund your start-up.

"There are peer-to-peer lending networks online, such as Prosper.com and LendingCircle.com, that make smaller loans. There's an amazing amount of money being lent through these sites, and investors are getting interest rates comparable to banks," Gass said.

For start-up expenses such as computers, furniture and office supplies, use trade credit available from business-to-business suppliers.

"Negotiate through your business and then those debts won't show up on your personal credit record," Gass said.

Source:http://www.latimes.com/business/la-fi-inbox9-2008jun09,0,1509503.story