How to become the Boss: Business Startup Guide for Women and Minorities

8/3/2019 How to become the Boss: Business Startup Guide for Women and Minorities

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TABLE OF CONTENTS

Is Owning a Business Right for You?...................................................................4

Find Your Mentor………………………………………………………………………..6

Register Your Business in Easy Steps……………………………………….………..7

How Much Do You Need to Start?.......................................................................9

Can You Provide for the FinancingRequirements?...........................................10

Loans, Grants, and other Resources to Fund Your Small Business….…………11

Take Advantage of Being a Small Business Concern……………………………12

What Your Business Plan Must Contain……………………………………………...13

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Is Owning a Business Right for You?

Most people dream of owning a business. However, not all are aware if it is the

right thing for them. For this reason, either they let their vision take a backseat or

they fail due to lack of knowledge and preparation. If you are one of those

women and minorities who cannot decide if you will go on with your goal or not,

here are some of the factors that you may consider:

1. Purpose

Why are you keen on starting a business? Is it for the sole reason that you are

obliged to do something significant out of your life or is it because you want to

provide for your family and create jobs? Sometimes, your purpose in establishing

a company, small or not, will dictate your level of passion and will determine the

type of outcome. Thus, if your aim is to become financially secure for your family

and to help people find jobs, you will give your 100 percent commitment.

Because of this, you are likely to succeed.

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2. Resources

Are you financially capable of starting your business? Remember, your expenses

will start right from hiring a writer for your business plan and getting licenses and

permits. There are a lot more to follow—and the amount can be huge. You haveto be ready financially.

3. Target Market

Who comprises your target market? Do they make up a bigger percentage of the

population in your location and nearby areas? This you have to make sure to

gauge the marketability of your products and/or services.

4. Time

Do you have enough time to attend to your business? Take note that thisendeavor demands your full time from start to early years or until the enterprise is

already settled.

5. Location

Does the location in your mind generate heavy traffic? This you must highly

consider because this is one of the factors that will signal your triumph. The people

passing by the vicinity will eventually become your prospect customers. You do

not wish to sell in a remote place, right?

6. Competition

Again, considering the location that you have in mind, you have to check if your

type of business has many competitions already in the area. You have to realize

that you are in no position yet to compete because you are just starting.

7. Uniqueness of the Products or Services

Are you planning to sell a unique product or service? Well then good. Or, is it just

an ordinary one? The key to business success is when you offer an exceptional

product or service or when you do something unique out of the ordinary. Thisbuilds curiosity or interest out of the buyers.

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After checking your

preparedness to land in the

world of business through

the aspects mentionedabove, are you ready to

back out from your plans or

are you aching to start? It is

your freedom to choose.

Find YourMentor

It is not sufficient that you

have the drive, the business

plan (which I am sure youdid not do yourself), and

the cash to begin your

venture. You will also need

the assistance of people who are experts in this field. They will share with you their

struggles, experiences, lessons learned and most especially the business strategies

that they became the keys to their success. They will be your mentors.

But because you are new, you have no idea where to find one. You need not

worry because here is the list already:

Minority Business Development Centers – These are handled by the Minority

Business Development Agency, which was a division of the US Department of

Commerce. With 40 locations, they are tasked to promote the growth and

success of minority-owned businesses in the United States.

Women Business Centers – It gives the necessary counseling, training and others

to assist women in starting, growing or expanding their businesses.

SCORE – This organization comprises almost 13,000 retired business managers,

leaders and others. It offers mentoring and counseling to entrepreneurs, especially

to women and monitories who own small businesses. Supported by the Small

Business Administration, it communicates with them in two ways: online counseling

and in-person.

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Small Business Development Centers – It assists owners in managing their small

businesses.

If the prior list belongs to the government, do not think that it is only the federal

government that offers counseling, training and mentoring to women and

minorities who are interested in starting up a business. There are also private

associations that provide assistance like angel investors and angel networks. You

may also look around and ask people for reference. It is better to take the time

and effort to attend sessions and trainings than be sorry.

You have to make sure that your business is operating legally; hence, you will

need to secure licenses and permits, as well as register it. Here are the basic steps:

1. Identify legal structure

In doing this, you must take into consideration several aspects, like legal, tax and

financial. The appropriate legal structure depends on a number of elements,

which include the extent of your authority to your business, financing requirements

and how vulnerable your trade can be to charges or litigations.

After knowing your legal structure, it is only then that you will be able to tell the

other requirements for registration, which varies from one state to another.

2. Submit your business name

You have to think and register a name for your business because it is very

important when securing licenses and permits, as well as employer tax

identification. You also write it on government forms.

If you are going for sole proprietorship, you can readily register your full name as

the legal business name. However, if you wish a name that reflects the type of

trade that you have, you have to register it as "Doing Business As" or DBA.

If you are in a partnership, the business name can either be the name you all

agreed on in the partnership agreement or the combination of all your last

names. For corporations and LLCs (Limited Liability Corporations), the legal

business name should be the one that is listed in the state government.

Register YourBusiness in EasySteps

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3. Get a Federal Tax ID

The Employer Identification Number (EIN), which has nine digits, helps the Internal

Revenue Service (IRS) to know who among the taxpayers must file the business tax

returns. Now, how do you apply for it? There are many ways: online, telephone,

mail and fax.

Apply at www.irs.gov. After completing the online form, your application can

readily be confirmed and the EIN can already be received. As a proof, you will

need to print a copy of the verification form. This may be the most preferred

mode for IRS, but you can still opt to apply through their telephone service at

(800) 829-4933 from Monday to Friday.

When submitting your application for EIN through fax, you may also do so, but

remember to attention it to the EIN Operation. After four business days, you will beable to receive your EIN through fax as well. The fax number is (859) 669-5760.

If mailing is more convenient to you, send your accomplished Form SS-4 and your

EIN will be sent through mail. This method may take a long while, though, about

four weeks. Attention your mail to EIN Operation Cincinnati, Ohio 45999.

4. Secure tax IDs and permits from your state

Even if you already have a Federal Tax ID, you also need to obtain permits and

tax IDs from the State Revenue Agency in your area. One of them is the sales taxpermit if you will sell products and you are obliged to get sales taxes. For other

permits and licenses, as well as taxes concerns, you may go to your State

Revenue Agency.

5. Obtain permits and licenses

If obtaining EIN is easy, it may be another way for permits and licenses because

you may need to get them from the federal, state, as well as local government.

Hence, the first thing that you do is to know which ones fit your small business.Below are some of the items that must be in the basic checklist:

Fundamental operation license in your city or in the local county

Health department permit, particularly if the business that you will start has

something to do with food

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Fire department permit, this is to make sure that you will follow all

regulations that will prevent future blaze

Zoning and land use permit

Occupational and professional licenses, auto repair, cosmetology, medical

care and tax services Sales tax license that will authorize you to collect sales tax from the

products or services you offer

Special licenses or permits from your state basing on these items offered for

business: gasoline, liquor, firearms, and others

HowMuch Do YouNeed to Start?

Okay, you have the

money. The one-million-dollar

question, though: is it

enough to start and

keep the business

floating in its early

months or first year?

Businesses have their

own cash needs.Some necessitate

small capital; some

call for huge

investments

because it entails

the acquisition of

land and pieces of equipment. To determine your financial requirement,

consider creating a spreadsheet and show a division for your expected costs:one-time and continuing expenditures. The first one includes property acquisition

or rental, licenses and permits, construction or remodel, signage and others. The

latter comprises electricity and other utility bills, supplies, insurance and many

more.

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After doing this, ask yourself as you review each item that you have written: is it

important or is it something that my business can live without? Put an "X" to the

unnecessary piece or entry and consider them out of your list this is because your

budget for startup should only compose those that are essential. Then you may

start placing an estimate cost for each. If you have no idea, make a survey andsurely you will come up with realistic figures of how much you need to effectively

begin your dream of having a business.

Can YouProvide for the

Financing Requirements?

After determining your budgetrequirement, you have to

evaluate your present economic

condition. You must be like an

army going to the war in full battle gear. If not, everything will end even before

you begin.

Reality check, can your bank account provide for all the needs of your planned

business? Of course, it is best if you can manage everything without seeking help

to others. You will begin your business venture without worrying about debts. Allyou have to think of is how to get your capital back and gain profit.

Or, do you still need to borrow from friends? Most of the time, it is still better to

scrounge for funds from friends than applying for loan. Because you well know

each other, there is no need to prepare and sign up for papers. Just make sure,

though, that you will give it back or else, your friendship will suffer.

For the reason that you do not want to put your friendship at stake, are you willing

then to get a loan? Can you bear the complex loan process? When seeking loan,you have to ready yourself because you will need to prepare lots of papers to

support your capacity to pay. These lenders will not give their money to someone

whose finances are questionable.

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Have you thought about looking for partners to increase your working capital?

This is a good idea. You have someone with whom you can split work and

financial load. However, you must realize that because of the partnership, you

cannot decide on the business alone. You always have to consult with him or her.

But there is one way to avoid this scenario, though. Get that person as anindustrial partner instead so he can only have a share of the profit but not of the

ownership.

Loans, Grants, and other Resources to FundYour Small Business

You have cash but it is not enough. Or, you have the ideas that you think will

surely turn gold but you have no money. Either of these scenarios, you need

funds. Consider applying for loans, grants, and others:

1. Loans – This may

include securing small

business loans from

private and

government

institutions. The only

thing you need is a

business plan to inform

them about your aspirations and to

prove to them that

they can trust you with

their money.

2. Grants – With this, you will need a grant proposal to explain to different federal

agencies your plans for startup and growth. In this paper, you will also

orient them with the company that you will build, the products or services thatyou will sell, how much you need, and many more. However, not all businesses

can have access to federal grant programs. Some enterprises that are fortunate

to receive grants are those that deal with renewable energy, healthcare,

childcare, elderly people, veterans, etc.

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In this program, there is no need for you to pay back the amount that is awarded

to you. However, you will need to follow what has been agreed upon.

3. Venture Capital and Angel Investors – This comes from people who have made

remarkable contributions in various industries. Because they are already expertsand successful in their fields, they aim to help other people, especially the ones

that belong to the disadvantaged population like the women and minorities,

grow and become entrepreneurs; thus, creating jobs, promoting financial stability

and supporting economic activities. All you need to do is to look for them over

the Internet.

TakeAdvantage ofBeing a Small BusinessConcern

The government has procurement programs available for small businessconcerns. If you are one of them, you must take advantage of your trade being

categorized as one in the "disadvantaged" list. If you have no idea if your

enterprise qualifies as one, the Small Business Administration or SBA has this

following information as definition:

Organized as for-profit, regardless if it is sole proprietorship, corporation or

partnership

Located in the U.S.

Operates in the U.S. or at least contributes significantly to the U.S. economyby paying taxes or using U.S. products, labor or materials

Owned and run independently

Does not dominate its field of business on a nationwide basis

Of course, before you will be able to participate in government procurement, you

will need to register first as a federal contractor. Here are ways:

Get a Dun & Bradstreet D-U-N-S Number at this link:

http://fedgov.dnb.com/webform/index.jsp. This is free. Register at Central Contractor Registration (CCR). This is a requirement of

the Federal Acquisition Regulation (FAR).

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http://fedgov.dnb.com/webform/index.jsp



Register at the Online Representations and Certifications Application

(ORCA).

Look for the North American Industry Classification System (NAICS) code or

codes appropriate for your business.

Secure past performance assessment if you are interested in obtainingcontract in the U.S. General Services Administration (GSA) Schedule.

Your business plan must carry all the information that it should have to bring your

venture to success and to capture the interest of lenders. Because you are new,

you should take these vital elements of a business plan into consideration:

Executive Summary

This may be the first one that can be seen in the business plan, but it is the

last one written. It informs the reader or reviewer who you are, what is your

business, your mission and vision, business strategies, competitive

advantage, target market, capital you necessitate and how you hope to

spend it, and many more. In short, it explains your whole work in one page.

Company

In this section, you need to provide your company name, objectives,

mission and vision, form of ownership, licenses and permits, legal structure,

and products or services. Include also your space requirement, company

location, and others.

Market Study

State here your target market, as well as market segments. Discuss how you

think you can penetrate the market effectively. Honestly indicate your

expected revenue in three or five years. Say how you also hope to practice

fair pricing and competition.

What Your Business PlanMust Have

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Products or Services

Identify the products or services that you plan to offer. Describe how they

will lead your business to success and how they can give you market

advantage. Discuss also where these products or services will come from.

Marketing Strategy and

Execution

Give details on how

your products or

services can infiltrate

the market. Are you

thinking of relying on

paper advertising?How and where will

you distribute

brochures? Will you

have a website? Are

you also thinking of

promoting through

social networking

sites? These and

others are thequestions that you have to answer.

Competitors

Identify at least five of your competitions. Tell the advantages of your

business to them. Know their strengths and weakness and how you will

address them to benefit your goals.

Operations

Explain how you will collect payments and how many employees do youneed, as well as their duties and responsibilities. Itemize the pieces of

equipment and technology that you need to support your workflow.

Indicate also your time of operation.

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Organizational Background

This part is also important because this will validate the capacity of your

people to help your business become successful. State their skills and

experiences. Include their résumés. If you have financial advisors and

business mentors, mention them as well.

Financial Summary

Provide a computation of your start-up cost. Make a spreadsheet of your

profit and loss statement for the first year of operation, as well as a cash

flow projection.

Attachments

Do not forget to attach documentations that will support your information.

This should include market research or market statistics, legal documents,personal financial statements and others.

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Documents

How to become the Boss: Business Startup Guide for Women and Minorities