Starting Your Business
Do I have what it takes to own/manage a small business?
What is a business plan and why do I need one?
What legal aspects do I need to consider?
What other financial responsibilities do I have for employees?
How much money do I need to get started?
What do I have to do to get a loan?
What does marketing involve?
Does SBA offer grants for small business startup?
Managing/Expanding Your Business
My business has been established for some time. How can the SBDC help me?
How much does it cost to discuss my business questions with an SBDC counselor?
How about confidentiality? I don't want the world to know everything I discuss, especially if I provide financial or proprietary information about my business.
Q. Do I have what it takes to own/manage a small business?
You will be your own most important employee, so an objective appraisal of your strengths and weaknesses is essential. Some questions to ask yourself are:
Q. What is a business plan and why do I need one?
A business plan precisely defines your business, identifies your goals and serves as your firm's resume. Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.
Q. What legal aspects do I need to consider?
Licenses required, zoning laws and other regulations vary from business to business and from state to state. You also must decide about your form of organization (corporation, partnership or sole proprietorship) or tax status (e.g., should you opt for a Subchapter S status?). You should consider contacting your attorney and/or accountant for assistance in properly formalizing your business.
Q. What other financial responsibilities do I have for employees?
You must withhold federal and state income taxes, contribute to unemployment and workers compensation systems, and match Social Security holdings. You may also wish to inquire about key employee life or disability insurance.
Q. How much money do I need to get started?
Once you have taken care of your building and equipment needs you also must have enough money on hand to cover operating expenses. These expenses include your salary as the owner and money to repay your loans. One of the leading causes of business failure is insufficient start-up capital. Consequently, you should work closely with your accountant to estimate your cash flow needs.
Q. What do I have to do to get a loan?
Initially, the lender will ask three questions:
When you apply for the loan, you must provide projected financial statements and a cohesive, clear business plan which supplies the name of the firm, location, production facilities, legal structure and business goals. A clear description of your experience and management capabilities, as well as the expertise of other key personnel, will also be needed.
Q. What should I know about accounting and bookkeeping?
The importance of keeping adequate records cannot be stressed too much. Without records, you cannot see how well your business is doing and where it is going. At a minimum, records are needed to substantiate:
But most important, you need them to run your business successfully and to increase your profits.
Q. What does marketing involve?
Marketing is your most important organizing tool. There are four basic aspects of marketing, often called the "four P's":
As you can see, marketing encompasses much more than just advertising or selling. For example, a major part of marketing involves researching your customers: What do they want? What can they afford? What do they think? Your understanding and application of the answers to such questions play a major role in the success or failure of your business.
Q. Does SBA offer grants for small business startup?
SBA's limited grant offers are generally designed to expand and enhance an existing small business technical assistance.
SBA's grant programs generally support non-profit organizations, intermediary lending institutions, and state and local governments in an effort to expand and enhance small business technical and financial assistance. (Visit SBA's Grant Resources website.)
Q. My business has been established for some time. How can the SBDC help me?
The SBDC provides an array of services to established businesses including counseling in business planning; marketing and promotion; financial analysis; and accounting. In addition, the SBDC offers:
Q. How much does it cost to discuss my business questions with an SBDC counselor?
Nothing! The information, management counseling, and technical assistance services of the SBDC professional staff are provided at no charge. A nominal fee may be charged for training workshops.
Q. What qualifications do the SBDC counselors have?
The professional staff members of each local service center are highly skilled individuals, each of whom has significant experience in the private sector. Many also have extensive management and financial consulting backgrounds. In addition to permanent staff, the SBDC also utilizes business owners, corporate executives, business school faculty, business school students, and other volunteers.
Q. How about confidentiality? I don't want the world to know everything I discuss, especially if I provide financial or proprietary information about my business.
All client information discussed by the client with SBDC personnel is confidential. SBDC consultants are required to sign confidentiality statements and cannot discuss proprietary information about your business with anyone other than SBDC personnel or persons you so designate.
