Do you know the compliance requirements of your city, county, state and federal governments? This is a question you should answer before getting started.
Businesses have been known to fail to get started because they could not obtain the licenses or permits required by their county or state. Others having started and invested substantial amounts of capital are shut down for code violations. Yet others fail to comply with state and federal filing requirements, thus incurring huge penalties. These penalties can put a real dent in your capital, making it difficult if not impossible to succeed.
Each locality or city will have its unique ordinances or other codes, but it is the business owner’s responsibility to be informed about these rules. Here is a story that demonstrates the problem codes and ordinances pose for small businesses.
An entrepreneur began holding occasional organic gardening classes in her backyard. In 2008, neighbors complained and circulated a petition against her company. The City of Los Angeles shut her down. But the story did not end with the shutting down of her business. This determined entrepreneur gathered a group of seven like-minded entrepreneurs who formed an organization they called Urban Farming Advocates in 2009 to lobby the city to legalize such businesses. Determination is definitely one of the qualities a business owner has to have.
This past July, a Los Angeles city code, originally adopted in 1946 to allow “truck gardening”, was amended to explicitly allow the residential growing of vegetables, fruits, flowers, seedlings, and nuts for sale off-site. Read full story here