20 Creative Food Business Ideas To Inspire You This Year

The phrase “licensed, bonded, and insured” is omnipresent in some industries. You’ll find it in the company's tagline, marketing media, and client contracts. Far from being just an advertisement strategy, being “licensed, bonded, and insured” carries a lot of meaning. And, for some companies, getting relevant licenses, insurance, and surety bonds is a legal requirement.  But, while being insured and licensed is standard practice for many companies, not many first-time business owners are familiar with the third term. So what does bonded mean? For most customers, ensuring that the business or contractor they hire fulfills all legal requirements is essential - and a significant factor in their decision-making process. Let’s look at the different terms and why your company needs to be bonded, licensed, and insured.  Licensed, Bonded & Insured – Let’s Start With the Basics The phrase “licensed, bonded & insured” has been conceptualized as a quick way to let clients, contractors, and suppliers know that a business meets all industry-specific legal requirements.  Each of the terms in this phrase carries a lot of meaning, and using it as part of your tagline is not something to be taken lightly. But what do the different terms mean? Let’s start with “licensed and insured.” Licensed Licensed means that business owners, employees, and managers have the necessary competencies and skills to carry out niche-specific tasks efficiently and safely. These competencies are assessed through standardized tests and certifications that need to be acquired. Licenses are industry-specific, and the more technical a business is, the more licenses it will require to protect clients, employees, and suppliers. In customers' eyes, a licensed company has taken all the necessary steps to protect the public’s health and safety and can guarantee high work standards.  Insured Insured shows that your company has acquired the necessary insurance to cover consumers and the company itself in the case of losses, accidents, or injuries. If a business is advertised as licensed, it has purchased insurance covers such as general liability and workers' compensation.  Pro tip - It’s helpful to acknowledge that each business is unique and, depending on the industry and niche you operate in, you will need to purchase different insurance policies. Because of the complexity of this step, partnering with small business insurance providers can help.  So, now that you are clear on what “insured” and “licensed” mean, let’s look at the third term: what does it mean when a company is bonded? What Does Bonded Mean? If your business is licensed and insured, you are now probably wondering whether it also needs to be bonded.  In business, “bonded” means that a company has purchased a surety bond. A surety bond is a financial instrument that allows a business to protect another party, such as a client or customer.  If the business fails to deliver the expected results, fails to comply with industry requirements, or doesn’t fulfill its obligation, the surety bond provides compensation to the customer.  Each surety bond provides a certain amount of coverage. The bond cost is a percentage of this amount, usually varying between 1-15%. If your business wishes to purchase a premium (bond amount or bond limit) of up to $20,000, you will need to pay between $200 and $3,000, depending on your bonds’ underwriting provider. The amount you’ll need for your company - and the rates you’ll be able to secure - will depend on your industry, niche, application specifics, and credit health. Surety Bond Definition Now that you know what to expect from a surety bond let’s look at the technical definition of this financial product.  A surety bond is an agreement or contract between three parties: the surety, the principal, and the obligee. This legal document is designed to guarantee that the obligations of a business owner (or principal) are fulfilled. It transfers the risk from the business owner to a third party (the surety provider or the government). While there are different types of bonds, a bonded company is always preferable to customers, who will receive compensation even if the business fails to meet its obligations.  How Do Bonds Work? When a company purchases a surety bond, it becomes liable for any obligations that are not fulfilled and guarantees the client that they will be able to receive third-party compensation. But how do these contracts work?  Firstly, there are three parties involved in the agreement: The principal is a surety bond’s principal, the entity buying the bond. A principal might be a person or business.  The obligee is the entity (person or business) that might need to be protected by the bond. The surety is the bond contract provider, which is paid by the principal and responsible for producing compensation to the obligee if the principal doesn’t meet obligations.  It’s worth noting that the principal will be required to reimburse any payment (penal sum) made by the surety.  Being Bonded vs. Insured: What Are the Differences? Business bonding and insurance are commonly confused. After all, both protect a third party and the company itself. But some radical differences set them apart. Here are the main three to simplify these concepts: The number of parties involved - insurance policies are agreed upon by two main parties: the insured (the company or business owner) and the insurer (the insurance policy provider). On the other hand, surety bonds involve three parties, and each contract will need to be crafted depending on unique circumstances. Bonds serve a different purpose - the main difference between an insurance policy and a bond is that an insurance policy is designed to protect the policyholder. In contrast, the bond protects the third-party obligee, the bond holder’s client. Bonds need to be reimbursed by the bondholder - when an insurance claim is filed, the insurer covers the liability. In the case of surety bonds, the holder needs to refund the payments made.  Unpreventable accidents or injuries might lead to insurance claims filing. Oppositely, surety bonds claims might indicate that the holder has carried out improper business practices that have led to financial losses for their clientele. That is why companies purchasing surety bonds will want to avoid any claim that might affect their reputation.  What Companies Need To Be Bonded?  While surety bonds are not needed for all industries or businesses, some companies can’t start operating without this added layer of legal and financial protection. Just a few of the niches that require surety bonds are: Contractors and construction companies Health clubs Insurance brokers Auctioneers Travel agencies Janitorial services Auto dealers Medical equipment providers Notaries public Purchasing a bond means that your clientele is protected in the case of unethical or improper business practices. Therefore, businesses operating in other industries - such as painting or plumbing companies - might provide consumer protection through a bond, representing a competitive advantage.  Types of Surety Bonds While there is a range of bonds your business might need, most surety bonds fall into the following categories: Construction Bonds - construction bonds are explicitly designed to protect clients and contractors in the construction industry. Some of the most popular construction bonds are bid bonds, payment bonds, and performance bonds. They cover a client against failed obligations, missed payments, and performance shortfalls during the bidding process.  Fidelity Bonds - fidelity bonds are designed to protect a business from employee misconduct or criminal acts, including dishonesty and theft. Commercial Bonds - commercial bonds include license, permit bonds, and bail bonds. Governmental and state agencies require the first to ensure that the business will carry out tasks per governmental regulations. The second is designed to help defendants leave jail during a criminal or civil case. Surety bonds requirements vary from state to state and from one industry to another. Make sure to check the laws applicable in your area.  Cost of Getting Bonded As we have seen above, the cost of getting a surety bond will be calculated as a percentage of the premium required. This percentage can vary but usually falls in the 1-15% bracket.  However, the cost of surety bonds is also influenced by many factors. These include: The type of bond - Some bonds, such as license and permit bonds, are straightforward and benefit from fixed prices. Others, such as fidelity and court bonds, can be more expensive and even require collaterals worth 100-110% of the bond amount. Underwriting requirements - if you are after an instant issue bond, you won’t need to undergo any credit check and pay a fixed rate. However, options such as credit-based bonds can give you access to better rates. Still, they involve underwriting (or the process of assessing the risk and premium of the bond) and are subject to your creditworthiness.  Your financial history - most surety companies won’t want to run any risk when granting you a bond. In the case of credit-based bonds, they will review your financial history and offer you relevant terms. If the applicant has good credit, the bond’s cost will be 0.5-5% of the bond amount, but someone with poor credit might need to pay between 5% and 20% of the bond amount.  The length and specifics of the surety bond might also influence the contract’s price. 

Introduction Biweekly pay is one of the most common pay schedules used by US employers. When you apply for a job, or are considering an offer from a company, it’s useful to know how often you will get paid. In this article, we’ll provide a quick explanation of what biweekly pay is and how it works, highlighting the pros and cons. What Is Biweekly Pay? Biweekly pay is a common pay schedule used by businesses and organizations in the US. Understanding biweekly pay meaning is essential for employees, as it enables them to budget effectively. As employees get paid every other week on a set workday, biweekly pay means that they receive their wages 26 times per year, rather than 12. The length of the month and the way the days fall dictate whether employees get paid two or three times per month. In most cases, biweekly pay for employees means receiving payment twice a month.  How Does Biweekly Pay Work? Biweekly pay enables employees to receive wages every other week. The employer will choose a specific day of the week on which to pay employees. The employee will then receive their payment every other week on the specified day, with many employers choosing to make Fridays payday. In this particular case, the employee would receive their wages every other Friday. Depending on how the dates fall, in one month, an employee may get two pay packets and, in another, they may get three.  The amount an employee earns on a biweekly payment schedule will depend on whether they are a salaried employee or an hourly one. While salaried employees will typically receive the same amount every payday, those who have an hourly rate may receive a different sum every time they get paid based on how many hours they have worked.  It is worth noting that if you’ve only just started a new job, it may take up to three weeks to get your first paycheck even if you are paid biweekly. As most employers distribute wages a few days after a pay period, this allows them to process hours completed and deduct the relevant taxes. What Is the Difference Between Biweekly and Bimonthly? It is common to read about biweekly and bimonthly pay when researching jobs and looking at different payroll schedules. Despite being similar, these concepts are not the same.  Biweekly vs. Bimonthly Biweekly pay means that employees get paid every other week on the same weekday, every other Friday, for example. Bimonthly pay, also known as semi-monthly pay, means that employees get paid twice per month. In the case of biweekly pay, the dates will differ, and there may be three paydays in one month. With bimonthly pay, employers issue wages on two specific dates every month, so that employees get 24 payments per year rather than 26. If you receive bimonthly payments, each paycheck will be worth slightly more than the value of biweekly paychecks. What Are the Pros and Cons of Biweekly Pay? Biweekly pay has some pros and cons compared to other payroll options, including weekly, monthly, and semi-monthly pay. The advantages and disadvantages of a biweekly pay schedule are: Pros Budgeting: biweekly pay makes budgeting easy for employees, as they know they are getting paid every other week on a set day. Employees on a biweekly schedule can plan a budget for a two-week period or a month, as they know how much money will be coming in. Budgeting may be slightly easier with biweekly pay than bimonthly pay because the days change for bimonthly pay. One payment may arrive on a Tuesday and the other on a Friday, for example.  Frequent pay: one of the main benefits of biweekly pay for employees is the frequency with which they receive their paychecks. It can be less stressful to cover bills and other expenses when you get paid every two weeks rather than every month.  Consistency: biweekly pay is a consistent system which is simple for employees and employers to adopt.  Cons Monthly variations: for employers and employees, biweekly payment schedules can be slightly more complex than other options because some months have three rather than two payment dates.  Personal preferences: some employees may prefer to be paid weekly, bimonthly, or monthly, depending on how they budget.

If owning your own retail business is your vision of a perfect career, you are not alone. With over one million retail businesses in the US alone, retailers thrive in online and real-world environments. Moreover, the opportunities for SMEs and micro-businesses have never been greater. However, opening a small online retail business - with or without a brick-and-mortar store - requires a lot of strategic planning and hard work. So, how to start a retail business in this day and age? Check out our guide, which will take you through all of the steps needed. Is Opening a Retail Store Right For You? Before looking at names for your proposed venture, you must look at the pros and cons of retail to determine whether it is a suitable business model for you. Whether you’ve been planning to start a retail store for many years or it’s something that has emerged following career problems during the pandemic, there is a lot of potential for entrepreneurs looking to enter the arena in 2022 and beyond. Here are just six eye-opening statistics to highlight that: Total global retail sales generated over $25 trillion in 2021 and are anticipated to top $26 trillion in 2022 Total eCommerce sales for 2021 were estimated at $870.8 billion, showing a CAGR of over 14% compared to 2020. Over 98% of all retail businesses in the United States are small firms with under 50 employees.  Small to mid-sized retailers have a gross margin of 51% on average.  The retail industry accounts for more than 18% of America’s total gross domestic product (GDP). Small to mid-sized US retailers complete an average of 482 transactions per month. As the statistics above show, this is an excellent time to consider starting a store. Small retail businesses might not always grab the headlines, but they continue to be the backbone of the retail sector and can achieve significant and stable profits. Moreover, running a business of your own puts you in control of all important work-related matters. However, be prepared to face a number of challenges. Before looking at how to become a retailer, it’s important to be honest with yourself. There will be long days ahead, particularly in the pre-launch phases. You’ll also need a passion for what you sell and the ability to manage your team effectively. Likewise, you’ll probably have to utilize both eCommerce and traditional selling methods to achieve your business goals. Still, the best candidates for starting a retail business have never had it better. 12 Steps To Opening a Retail Store in 2022 If you are going to open a local store or a small online retail business, it’s imperative that you do it properly. After all, retail companies are prone to the same failure rates (20% in the first two years) as companies in any other industry. With the right strategy, though, your business will have a much higher chance of thriving in the highly contested retail market. When starting a retail business, these tips will point you in the right direction. Step 1: Find Your Niche Retail is a very broad term., which is why researching the industry and finding your place in the market is the first step you’ll need to take. The results will influence everything from where you look to gain inventory for retail startup stores to guiding your target consumer profile. Finding the right niche is the perfect platform to build your upon. Very few retail businesses boast a universal appeal. So before starting an eCommerce site or opening a store, you should do the following; Try to create a business you are passionate about. Working on something you love will make tough times seem more manageable, while your enthusiasm can rub off on consumers and workers alike. Think about potential obstacles, particularly in the early stages of running a company. Knowing the pros and cons of retail will make a huge difference. Research the profitability of your niche by looking at Google Trends and other online industry insights. If there is no demand, you’ll need to look elsewhere. Research the competition. Before starting a store, you can learn valuable tips about what to do - and, more importantly, what not to do - as a business owner. Consider whether there is a gap in the market or an area that has shown potential for future growth. As a business owner, whether you’re in the home decor retail, fashion or food industry, or just about any other niche, there are three main ways to attract customers. You can either bring something entirely new to the table, improve on the quality currently available on the market, or undersell the competition. Step 2: Write a Business Plan Many entrepreneurs (not only in retail) will create a basic business plan because they have no experience writing one and don’t realize its importance. In reality, the document is something that provides continued guidance and clarity as you look to turn a vision into a successful enterprise. A good business plan can increase the chances of growth by as much as 30%. You may use a lean startup business plan or a one-page retail business plan if you have a very clear idea of what you are doing. A more thorough approach is necessary if you also need funding. Your plan must: Include an executive summary with a  company description and a look at the internal organization and management. It should also have a  market analysis, a product line, marketing and sales information,  funding requests, financial projections, and an appendix. Detail the challenges you’ll face and what makes your offline or eCommerce retail business unique. Accurately outline your retail startup costs. Detail your intended hiring process, even if you run a home-based online retail business powered by outsourced workers. Follow a suitable format. The business plan is made for your benefit as much as for finding potential backers or partners. Besides, adopting good organizational skills and an analytical approach at this stage will serve you well throughout the process to come. Step 3: Finance Your Business If you’re wondering how to open a retail store with no money, the good news is that there are options available. Making the business a legally sound operation costs next to nothing while online retail startup costs are very low too. Meanwhile, almost a quarter of retail sales are facilitated by drop shipping, which highlights an excellent opportunity to avoid stock costs. With that said, you’ll still need some funding to get the company rolling - even when you expect to see quick returns. Some good funding options include: Crowdfunding from friends, relatives, colleagues, and even strangers online Bank loans SBA business grants and loans Small retail business credit cards Private investments/angel investors. You must have a clear understanding of the total retail startup costs and always give yourself a buffer of at least 10% over the estimates. There is nothing worse than failing even before you got the venture up and running because you underestimated the expenses. Step 4: Register The Legal Entity Your ideas for a retail business are little more than wishful thinking until you’ve officially registered the company. You must first familiarize yourself with the different types of entities you could register. In most cases, it will be either a sole proprietorship or an LLC, but partnerships and corporations are options too. The registration process is these days quicker and more convenient than ever before. Nonetheless, you’ll need to complete the following steps; Check your proposed business name against trademark filings in the US Patent and Trademark Office. Establish a detailed description of the business. Register for your Federal Tax ID or Employer Identification Number so that you can work and employ a team. Satisfy any state insurance requirements. Set up a retail checking account for the business. This part of the process will impact everything from your level of legal protection to the process of receiving funding. It will also determine the way the income will be taxed. With this in mind, it is often advised to use an accountant or financial advisor to handle this part of the process, especially if it’s your first venture. Step 5: Develop Your Brand Personality There are almost two billion websites online, and many of them are from competing retailers. If you want your retail store website to stand out from the crowd, you must develop a winning brand personality that resonates with your audience. Again, knowing your niche will be essential. It takes an average of seven touchpoints to create brand awareness, and prospective leads and clients will form opinions based on several factors. So, you must look to perfect the following: The brand’s visual elements including the logo, color schemes, website design, and more. The layout of a store. When opening a storefront, you must also focus on the signage and window displays. Likewise, your website must have the right landing page. Your mission and vision statement will define what you are and how you want to serve your community. Two-thirds of customers want to use brands that share their views.  Your brand story. It should present the people behind the company earnestly and be something people can relate to. Brand positioning: formal versus informal, budget-friendly versus premium products, etc. A well-defined brand will help you select the right products, target the best audience for your niche, and perform more consistently. Step 6: Gain a Business License For Retail Obtaining the appropriate business licenses for your shop or retail store website might not be the most exciting aspect of launching your company. Still, it is one of the most significant steps you will have to undertake. It will ensure compliance and help you avoid penalties ranging from fines to enforced closure. To make your business compliant even before opening its doors, you must ensure that you: Get a sales permit from the state, allowing it to actively sell products and collect sales taxes Gain an online retail license (if applicable) that reflects the type of products you are planning to sell Secure product-specific permits (if applicable) for items like alcohol Acquire any local government-issued sign permits and certificates of occupancy for your brick-and-mortar store Secure any appropriate exporting licenses if you plan on having your eCommerce retail business selling internationally. You will also need to consider issues like COVID-19 mandates and health and safety signage. While primarily thought of as an issue for physical stores, online retail companies may still need to take note for the sake of their workers. At this stage, it will be worth finding the right business insurance too. Step 7: Assemble A Winning Team New retail businesses are unlikely to have an HR team, especially when it’s a home-based online retail business. But that doesn’t change the fact that assembling a great team is one of the most important tasks you’ll face. There is a long list of workers you may need, from factory workers to shop floor assistants. When starting a retail business, this is one area where you will have plenty of options to consider. You can: Hire permanent on-site workers like store salespersons and office workers Utilize remote workers  Partner with courier services and order fulfillment teams, as well as IT and cybersecurity experts Utilize the gig economy to find short-term contractors for issues like graphic design Use work placement schemes and internships to manage your staffing budget. Not all of your employees will be needed right away. Even so, it’s essential to plan ahead so that your retail business keeps running smoothly. Otherwise, you could hit numerous setbacks along the way. Step 8: Know Your Products Finding the right inventory for a retail startup can be tricky. Whether it’s a greenhouse retail business or a food venture, you need to prioritize top-shelf goods to make a dent in the market. Ultimately, you will achieve nothing if the product quality isn’t up to scratch. Returning customers spend 33% more than first-time visitors. Giving them a reason to return is vital, and products are the answer. There are various options at your disposal. If looking at how to start a fashion retail business, for example, you may wish to; Design and manufacture the products in-house Take your designs and outsource the manufacturing to another company Consider selling existing garments as a reseller Dropship or look to affiliate marketing  Create a combination of two or more of the methods given above. Whether it’s fashion or not, you need to focus on quality and be able to provide a wide range of options for consumers. Don’t forget about product personalization, though. 93% of B2B professionals believe it has a significant effect on revenue growth, so it’s definitely worth considering. If using outside vendors, be sure that they are trustworthy and will represent your brand well. Step 9: Develop Your Physical & Online Stores When starting a merchandising business, you have to create the right store to attract traffic. For a brick-and-mortar store, you’ll need to find a location where foot traffic is viable without spending a fortune. It’s important that your retail store website ticks a number of boxes. You need to: Check that your web host offers excellent uptime. Nearly 90% of consumers won’t return to a site that delivers a poor user experience. Make the website visible. Search engines are the number one source of online traffic, especially from consumers prepared to do some shopping. The website uses a suitable CMS and has a layout with clear navigation to product pages. Utilize several landing pages. Creating 30 or more can bring as many as seven times more leads. Support your website with social media marketing and PPC. In short, your online store is a storefront and shop floor at the same time. If you do not make the right design and marketing choices, even the best products will fail to convert leads to sales. Conversely, an attractive-looking store that’s easy to navigate keeps users interested for longer, translating to more revenue. Step 10: Consider Third-Party Selling Even with a strong marketing strategy, it will be difficult to get people to find your store at first. Therefore, you may want to consider starting an Amazon retail store too. Around half of all US eCommerce goes through the platform. You’ll still be competing against other companies, but displaying your goods in the largest shopping window around will give you a better shot at success. You may find that consumers buy from Amazon at first because they trust it more than a newly opened store. Give them time, though. Here are some things you can do to draw potential prospects in faster: Ensure that all product images make a big impression Focus on creating backend search terms Utilize your product descriptions to tell your brand story. Look for social media integrations and social influencer marketing.  Other popular options include Etsy, eBay, and Walmart. However, the right choice will depend largely on the type of products you sell. Step 11: Find The Right Retail POS If you want your in-house retail store website or physical store to perform well, you’ll need to use a variety of tactics. Partnering with another local non-competing business or playing an active role in the local retailer community will help greatly. You should also consider your retail POS system carefully. Omnichannel integration works great for retailers in both eCommerce and offline ventures. Here are some other factors that you’ll want to consider at this stage: Online consumers want multiple payment options. You never want to lose a sale because someone is unable to make a payment. eCommerce sites that offer repayment models will open their doors to bigger client bases due to the added flexibility they provide, but this could easily be a trap if your finances aren’t solid. Mobile POS terminal payments have become increasingly common, especially with local retail businesses. You will need a quality retail POS system to boost consumer satisfaction and sales. POS terminals can now integrate with customer care, order fulfillment, and other features to deliver a better UX. Even as a new retailer, you must look to set high standards right away. It is the only way to win new customers and set the foundation of a long-lasting relationship that will see them spending big on your brand in the years to come. Step 12: Make an Advertising Push Before Opening Your Doors  At this stage, you are finally almost ready to open your doors and start selling products. A good local advertising campaign for a brick-and-mortar store will go a long way towards generating hype for your products. The same goes for your online store, which you’ll need to advertise well on social networks and in the relevant forums and chat groups. At this stage, you should know your target audience well and can make the most impactful advertising campaign.   Further Reading Cross-selling vs. Upselling: What Is the Difference? Best LLC Service: The Top Companies The Best Website Builder: Our Top Picks   Final Words Thousands of entrepreneurs will start an eCommerce retail business this year, while many more will open brick-and-mortar stores. While some will be destined for failure, those who take all the necessary steps to prepare properly and enter their niche with the right attitude will see their retail business thrive and generate profits quickly. Consumers are far more interested in quality products, customer experience, brand authenticity, and corporate responsibility than the brand's size. Find the right audience and meet their needs well, and success should follow.