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Start Up
Turning Start Up Ideas Into Action
By justBurbank.com | March,2008
Got a great idea for a business? Yeah…well, so now you’re a visionary. But are you a business person…you know, someone who actually takes action.
Planning and starting a new business is scary, overwhelming, takes all your time, stresses the hell out of you and it’s the best. It’s yours, it’s all yours.
The trick is to not get too overwhelmed or too stressed. If you plot your course and do your homework…research and more research, the probability for success is much greater. During this stage, definitely keep your day job and use your spare time to scour the internet, write a business plan with a marketing plan, save money and get it going before you commit 24/7 to it. Here are the first 3 steps you need to take to get started:
Business PlanThis will help you to clarify what your products and/or services are, what exactly your goals are and how to achieve them. This means you will need to:
· Clearly describe your business, products and or services.
· Identify your market demographics (your targeted customers).
· Know your competition and what make your business different/better.
· Project income and expenses.
· Define funding requirements.
· Set up your management team and their responsibilities.
There are plenty of great online resources that can guide you through the business plan process. (www.score.org, www.myownbusiness.org, www.entrepreneur.com, www.business.com) There are also many business start-up kits available at either your local bookstores or office supply stores.
One of the most important parts of a good business plan is the Marketing Plan. This should be detailed with targets and timeframes included. You will need to lay out your promotion and sales projections. This process will also make you confront all the actions needed for success and will show up any black holes in the plan that could be deal breakers. It is certainly better to see them before you commit real money to a bad idea. Okay…so the plan is done and it’s a go….
Next is Administrative Hell. None of the below will contribute a dime to sales or income so get this stuff out of the way before you quit the day job because there is just no getting around it:
· Tax status: decide whether you are a Sole Proprietor with a DBA, a Partnership, a Corporation, or a Limited Liability Corporation.
· If you have a partner, write up a Buy/Sell Agreement. (Very important…have a lawyer look this over.)
· Business Checking Account
· Set up QuickBooks, to enter Income & Expense transactions.
· Get Local Business License.
· Have Employee(s)? Get W-4s, EDD applications, I-9 forms, Workman’s Comp and ADP for payroll (see below).
· Have Outside Contractors W-9, 1099s.
· Set up Merchant account to accept credit cards.
· Need a website? Find a good web designer and get a quote.
· Get quotes on promotional materials, manufacturing if needed, cost of any inventory needed and other equipment or materials needed to start.
· Arrange for funding the start-up and be sure you have at least 1 year to 18 months income to keep the business going without a dime of revenue. Most businesses fail in the first 18 months due to lack of enough funding.
If you are in Burbank, you can go to the City of Burbank website, “starting a business” section and read about Burbank Permits and other City requirements. Another great resource is “Team Business,” a city sponsored service that offers guidance, training opportunities and possibly even financing for your business. Their website states, “We link the best resources for training, consulting and access to capital with those Burbank residents who want to start a business, and business owners who are poised for growth or are seeking stability in today’s promising economy.”
Talk to an Accountant: Most people start businesses as a sole proprietor with a DBA (Fictitious Business Name) from LA County. This is needed to open a business checking account. If you use independent contractors, you will need to report what you paid to them on a 1099 at the end of the year. If you plan to hire an employee, you will need to file with EDD, (Employment Development Department) and get Workman’s Comp Insurance and for most beginners, it is advisable to hire a payroll company like ADP to send out payroll checks and handle the EDD reports for you.
Software like QuickBooks makes it easy to track income and expenses, pay bills and keep your bookkeeping in order for your tax filing. Budget a little extra money to hire a competent bookkeeper to help you set up your bookkeeping properly and train you how to use QuickBooks. It will be well worth the money.
Ready to Launch…Start Networking…especially if you are a service based business. It’s an inexpensive way to get your company known, make good contacts and get generate sales. Join business clubs like the Burbank Chamber of Commerce where you will meet other business people and find excellent resources, not only for sales, but also for support and advice. There are a number of local networking groups like BNI, Leads, Le Tip, WRS, NAFE, Rotary, Lions, Kiwanis, Toastmasters, and more. Also look for industry specific groups that focus on your type of business. Networking is by far the most cost effective way to increase your business visibility and profit.
Hope this was useful and much success to you!
The team at www.justBurbank.com collaborates on our articles. Each employee, contributes, then Kate edits for business-appropriateness, and Libby edits to make sure the article is funny and juicy. Our aim is to write helpful & entertaining articles.
