May 15, 2007 by mrbizplan.

tootimestoo asks: 

 
I heard from a friend that you don’t need to register a trademark to use the TM symbol behind your brand/logo…is that true? 
 
Mr. BizPlan Answers:
 
What your friend said is true regarding the use of TM without registering the trademark.  Registered trademarks are noted by use of the symbol ® known as “Circle R”.  You can only use the symbol TM if you believe that you are the first person/company to use the trademark in commerce.  The burden on proof is on you to prove that you are the first if the trademark is challenged.

 
Trademarks are registered with the US Patent & Trademark Office ( www.uspto.gov ).  There you can register a trademark or service mark online, search trademarks already in use, and print off the paperwork if you wish to file offline. 

 
If you register the trademark the USPTO goes through a lengthy process (about 180 days or more) to “inspect” the trademark, allow time for others to challenge the use, and file the registration.  Once approved you can use the “Circle R” symbol and you have full undeniable rights to the mark.   

 
Certain symbols and words may not be trademarked including: 1) A person’s likeness without consent, 2) descriptive words, 3) generic words such as aspirin, digital, and escalator, 4) Government Emblems, 5) Marks that are immoral, scandalous, deceptive or may cause confusion, and 6) personal names.   

 
Good Luck
Mr BizPlan
 

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May 3, 2007 by mrbizplan.

Napers asks:

I am looking at buying a small restaurant in my town.  They are asking around $350,000 but there is only about $200,000 worth of assets and nets about $50,000 in income.  How can I determine if it is worth the asking price.  Is there anything else I should consider?

Mr. BizPlan answers:

Lets break this question down into its parts:

Preparing to Buy a Business

At a minimum you should get two to three years of historical income statements (more if they are available).  These will help you identify any trends that are occurring in the business and give you an idea of the potential profitability.  Understand that most small business owners try to minimize their tax liability so there may be some expenses that aren’t exactly necessary or business related.  Another common occurrence is sales that never hit the books (called skimming - it is also called tax fraud - but hey, it happens all the time).  Taking these into consideration you should be able to build projections based on reasonable assumptions.  If the seller says that he takes $1000.00 out of the tills a week add back $800.00 and then make sure you adjust for the taxes they should have been paying.

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