How to Start a Business
Checklist for Starting a Business
Checklist for Self –Assessment
o
Assess yourself as an entrepreneur
Personal Characteristics
Leadership skills and abilities
o Take the skills test:
http://www.mindtools.com/pages/article/newLDR_50.htm
o List your strengths and weaknesses.
Do a personal SWOT analysis
http://www.mindtools.com/pages/article/newTMC_05.htm
o Determine how business ownership will impact your family and home life
o Determine your personal financial situation:
www.sba.gov/sites/default/files/tools_sbf_finasst413.pdf
Assess your business experience and management skills
What basic skills do you posses and will you need additional training before you
start a business?
o
Are you goal oriented and can you help others see your vision?
o
Do you have the ability to motivate people?
o
Can you teach and explain concepts and ideas?
o
Are you good at resolving conflicts?
o
Do you do well without structure?
o
Are you resourceful?
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o
Can you build a team?
o
Are you a coach?
o
Can you EXECUTE?
Life Skills Needed By an Entrepreneur:
http://www.entrepreneurshipsecret.com/life-skills-needed-by-anentrepreneur/
Demands of Business Ownership
o
Long hours
o
Emotional strength
o
Good health
Exploring Your Business Idea and Determining Feasibility
Defining Your Business Idea
o What business will you be in?
o What problem will you solve through a product or service?
o Who will you sell to and are there enough customers?
o How will you reach your customers?
Refining Your Business Idea
o Get specific about what service or product you will provide
o What skills will be needed to run this business and do you have them?
o If not, what will it take to obtain them?
o How will you position yourself in the marketplace for a competitive
advantage?
o What are the market and industry trends in your chosen business?
http://www.retailowner.com/StoreBenchmarks/tabid/55/Default.aspx
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Federal Business Opportunities:
https://www.fbo.gov/
o Research business trends and markets:
www.sbdcnet.org
o Determine the Feasibility of Your Business Idea
http://www.kansas.gov/businesscenter/thinking/
o Explore new business ideas and trends:
www.trendhunter.com
www.springwise.com
www.smallbiztrends.com
http://www.entrepreneur.com
http://www.startupnation.com
Develop a Marketing Strategy
o Obtain demographic and psychographic information on you business
www.census.gov
www.ipsr.ku.edu
www.sbdcnet.org
The Library
o Assess the competition
o Internet based research on benefits and pricing
o Create a list of competitor strengths and weaknesses
o Determine if you can obtain a competitive advantage?
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Know Your Customer
o Who will your customer be?
o Where does your customer live?
o How will customers find you?
o How much will it cost to reach your market?
o Will you be able to create “value” in the market?
Determine a Legal Structure for Your Business
Explore the different business entity options:
One of the first decisions a new business owner faces is choosing a structure for
the business. Businesses range in size and complexity, from a self-employed
plumber to a large corporation, and can be organized in a variety of ways.
Factors such as taxes, type of business, insurance needs, number of owners, and
financial needs will determine how the business should be organized. Choosing
the appropriate organizational structure for your business is one of the most
important decisions to make, and may require advice from an attorney, an
accountant, or another knowledgeable business advisor.
Note: The information contained herein is provided for discussion and
educational purposes only, and SHOULD NOT be relied on as a substitute for legal
advice provided by a qualified attorney, or as accounting advice provided by a
qualified accountant. Please consult the appropriate professionals for further
clarification and assistance when making legal filings.
* Sole Proprietorships
* Partnerships
* Corporations
* S Corporations
* Limited Liability Company (LLC)
Information on the different business types, descriptions, advantages and
disadvantages can be found at:
https://www.accesskansas.org/kbc/busTypes.html
A useful guide to all things business related in Kansas:
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Download “Steps to Success – A Guide to Starting a Business in
Kansas”
https://www.accesskansas.org/businesscenter/index.html?link=start
Obtain Licenses and Permits
o State Level; Industry requirements
http://www.kansas.gov/services/
o County Level; Check with you local County Clerk or visit the counties web
site.
o City Level;
Check with the City Clerk or visit the cities web site.
Choosing a Name for Your Business
o Choose several names that fit your objectives and your companies products
or services.
o Check availability:
Web based searches like Google and Yahoo
Check domain availability at sites like:
www.godaddy.com
http://www.register.com
http://www.active-domain.com/
o Check for corporate usage:
www.kssos.org
o Check for trademarks at: www.kssos.org and www.ustpo.gov
Name Guidelines and Restrictions:
https://www.accesskansas.org/businesscenter/index.html?link=na
me_avail#guidelines
Kansas Search Sequence:
https://www.accesskansas.org/bess/flow/main?execution=e1s1
o Trademark or register or protect your name for Kansas: www.kssos.org
o Trademark or protect your name nationwide: http://www.uspto.gov
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Hiring Employees
If you are hiring employees:
o Register for unemployment insurance
o Seek help from your insurance provider on Workman Compensation
insurance.
http://www.dol.ks.gov/wc/about.html
Hiring Guidelines;
http://www.irs.gov/businesses/small/article/0,,id=98164,00.html
o Review 10 Steps to Hiring Your First Employee;
http://www.sba.gov/content/10-steps-hiring-your-first-employee
1. Obtain an Employer Identification Number (EIN)
2. Set up Records for Withholding Taxes
3. Employee Eligibility Verification (Form I-9)
4. Register with Your State's New Hire Reporting Program
5. Obtain Workers' Compensation Insurance
6. Unemployment Insurance Tax Registration
7. Obtain Disability Insurance (If Required
8. Post Required Notices
9. File Your Taxes
https://www.eftps.gov/eftps/
10. Get Organized and Keep Yourself Informed
o
Obtain Business Insurance
o Determine the business property coverage for loss due to theft, destruction,
and damage.
o Obtain liability coverage for all vehicles used in business including personal
and employees.
o Consider product liability insurance limits that are customary and
appropriate for your industry.
o For home-based businesses, discuss your operations with the carrier of
your homeowners insurance for limitations, exclusions, and necessary
changes.
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Legal and Tax Reporting Set-up
o Obtain Federal and State Identification Numbers
EIN (Employer Identification Number) www.irs.gov ; search “EIN Online” or
“Form SS4”
Kansas Business Tax Application: Form CR-16
https://www.accesskansas.org/businesscenter/index.html?link=bus
_tax#sstin
Sales Tax;
www.ksrevenue.org
Tax Fact Sheets;
www.ksrevenue.org/factsheets.htm
Recordkeeping and Accounting
o Consider hiring or working with a bookkeeper, accountant, or CPA
o Utilize a accounting software system such as QuickBooks
o Set up a recordkeeping system for all your business transactions. Review
IRS publications:
334 “Tax Guide for Small Business”
583 “Taxpayers Starting a Business”
http://www.irs.gov/formspubs/index.html?portlet=3
o Attend a seminar on small business finance.
Meeting with a Loan Officer
Below is a checklist compiled from conversations with bankers to help prepare
entrepreneurs seeking capital to start or expand their business.
http://www.sba.gov/content/business-loan-checklist
o For existing business owners: Historical financial data substantiated by tax
returns.
o For start-ups. A Business Plan
o Resume of the individual, or for each partner.
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o Demonstration of knowledge on the financial side of small business
accounting, organization, and filing practices.
o Personal credit history.
o Personal financial statement
http://www.sba.gov/content/personal-financial-statement
o Realistic assumptions and projections for the start-up or expansion.
o Contingency plans or worse case scenario options.
o Business succession plan.
o Life insurance policy to cover debt in case of accident.
Create a Business Plan
A business plan is a statement that analyzes your proposed business
and provides readers a road map to your success. The plan
demonstrates to potential investors how money will flow and how you
will accomplish your objectives.
There are many books and software programs available to help you
write your business plan. Some excellent material includes:
Books:
How to Write a Business Plan
NoLo Publications
The Successful Business Plan
by Rhonda Abrams
Software:
Business Plan Pro
by Palo Alto
The Business Plan
by Funding Roadmap
In addition, the Washburn University Small Business Development center offers
business planning workshops with hand on instructions and access to a software
planning tool.
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