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Starting
Your Own Business
Disclaimer:
Great care has been taken to ensure the accuracy and
completeness of the information provided here. Nonetheless,
the new business owner is cautioned to contact the
City of Foster City and the San Mateo County governments
to confirm the requirements and to determine if other
requirements are necessary for their business. The
Foster City Chamber of Commerce assumes no liability
for the correctness of the information presented here.
1.
Summarize your idea for the Business
2.
Identify the niche market
3.
Learn everything you can about the business you
want to start and the marketplace
you’ll be operating in
4.
Decide on a good business location for your business
- very importantly, verify that
the type/nature of your business
is allowed at
that location
- verify that the kind of signage
your business would need is allowed
at that location
1. Create a Business Plan
1.
Purpose of the Business
- explanation of your business
and its activities
- overview of your key objectives
and business goals
2.
Describe the Business
- what is the core product
or service
- how will the business
grow and profit
3.
Define your Market
- the market niche for your
business
4.
Analyze Your Competition
- acknowledge competition
- describe how your business
will differ from others
5.
Describe Your Marketing Strategy
- how will you access the
market niche
- your experience/qualifications
to do so
6.
Describe Your Business Accomplishments
- profiles / biographies
of yourself, your partners,
other key managers
For
further information: www.nolo.com
2.
Make Financial Projections
1.
Break-Even Analysis
a.
Making Estimates
- estimate income and
expenses over one year, making
allowance for seasonal fluctuations
b.
Categorizing Expenses
- what are the Fixed Costs
- what are the Variable
Costs e.g. inventory, packaging,
supplies, etc.
c.
Estimate Sales Revenue
- how much you plan to
charge
- what is the volume you
can expect
d.
Calculate Average Gross Profit Percentage
- how much of each sales
dollar will be left over after
paying for the costs of the products or services
themselves
e.
Estimate Fixed Costs
- e.g. rent, utility bills,
phone bills, salaries, office supplies,
uncollectible debts, etc.
f.
Calculate Break-even Point
- the amount of sales
revenue needed to cover
costs
g.
Analyse Results
- if you have trouble
projecting a solid profit, you may
want to rethink setting up this business
2.
Profit/Loss Forecast
3.
Start-Up Cost Estimate
4.
Cash Flow Projection
- whether you’ll need to
set up a credit line or make other arrangements
for funds
For
further information: www.nolo.com
3.
Consult Professionals
1.
Your Accountant
– your business structure,
bookkeeping, accounting and
financial management,
taxes, etc
2.
Your Lawyer
– your business structure,
entering into contracts and agreements,
etc.
3.
Your Insurance Agent
– insuring your business,
property insurance, liability insurance, specialized
insurance policies, etc.
4.
Choose a Business Structure
Considerations
of personal liability, taxation, ability to raise
capital, costs of setting up – legal fees and filing
fees, nature of business, etc. will govern this
decision.
The
four basic choices are:
1.
Sole-proprietorship
2.
Partnership
3.
Incorporation
a. S Corp
b. C Corp
4.
Limited Liability Corporation (LLC)
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