Steps in starting a business
  1. Decide on the nature of the business:
 Evaluate your skills and interests.
Talk to potential customers, validate opportunities.
Examine the competition and evaluate your position.
Experience the work!
Have adequate capital to start!
Develop a Business Plan using Preferred Business Plans Workbook, setting reasonable and appropriate goals.
2. Choose a business location:
Evaluate the location:
Market potential/access to customers.
Safety and area crime rates.
Competition.
Cost/lease provisions.
Zoning restrictions/enterprise zones:
Consider a home-based business - the fastest growing market.
Do you qualify for a home office deduction? See: IRS Publication 587, Business Use of Your Home.
Comply with legal requirements.
Organize your work space.
3. Select a form of enterprise - legal entities in doing business:
Sole Proprietorship.
Partnership.
Limited partnership.
Corporation.
S Corporation.
4. Choose a business name and file a Fictitious Business Name Statement, which is required if you are a sole proprietorship or partnership and not using your legal name.
5. Shop for a small business oriented community bank. Establish a relationship with a banker that you are comfortable with and keep him/her informed. Open a business account.
6. Contact an insurance broker to insure proper insurance protection. Review coverage of property, equipment, personal, and product liability.
7. Obtain a Business License from your local city agency and pay the business tax. You need the business license for each city you conduct business in. The tax is usually based on anticipated first year revenue.
8. If working from home verify zoning for home-based businesses, and obtain home occupation permit.
9. Obtain required State Licenses for Businesses engaged in various regulated activities such as:
Alcoholic beverages.
Air resources.
Banking.
Barbers and cosmetologists.
Food and agriculture.
Health services.
10. Obtain Federal Licenses for regulated businesses. Check with the Internal Revenue Service to obtain "Your Business Tax Kit" publication #454.
11. If you have a retail business, you must obtain a Reseller's Permit.
12. Obtain Federal and State Employer's Identification Numbers (EIN) if you have employes.
13. Check with your City Clerk's Office to insure compliance with other city permits and regulations such as:
Building Permit.
Electrical Permit.
Plumbing Permit.
Special Use Permit.
Fire Permit.
Smoking restrictions.
Toxic and hazardous waste disposal regulations.
14. Check with your County agency to insure compliance with health, food and environmental restrictions.
15. Protect your patent or trademark:
Contact: U.S. Patent and Trademark Office
Or mail:
US Patent and Trademark Office
US Dept. of Commerce
Washington, DC 20540
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16. Protect your copyright:
Contact: U.S. Copyright Office
Or mail:
Register of Copyrights
Library of Congress
Washington, DC 20540
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17. Establish appropriate record keeping procedures:
Bookkeeping - record income, expenditures and activity.
Cash accounting vs. accrual.
18. If you have employees, there are additional considerations:
Workman's Compensation.
Employee withholding taxes.
Workers' benefits.
Health & Safety issues.
Social Security Administration.
US Dept. of Labor Regulations.
No matter what business you start or expand, you need a plan!!! Preferred Business Plans Workbook will serve as the blueprint from which you will build, monitor, and direct your on-going business operations for years to come.
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