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)