Small-Business Startup

There is a growing trend of individuals starting up small businesses.  For more detailed information, check out these valuable online resources.  Most businesses start out small.  As a new business owner you need to know your federal tax responsibilities.

Small Business Administration - official government website.

IRS Official Site - the IRS business startup website.

Entrepreneur.com - the business startup section of the official website.

Wall Street Journal - the WSJ.com small business website.

Business.gov - Business.gov guides you through the maze of government rules and regulations and provides access to services and resources to help you start, grow, and succeed in business.

Writing The Business Plan

What goes in a business plan? The body of your plan can be divided into four distinct sections:

1) Description of the business
2) Marketing
3) Finances
4) Management

Agenda should include an executive summary, supporting documents, and financial projections. Although there is no single formula for developing a business plan, some elements are common to all business plans. They are summarized in the following outline:

Elements of a Business Plan

1. Cover sheet
2. Statement of purpose
3. Table of contents


I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance


II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
F. Three-year summary
G. Detail by month, first year
H. Detail by quarters, second and third years
I. Assumptions upon which projections were based
J. Pro-forma cash flow


III. Supporting Documents
A. Tax returns of principals for last three years Personal financial
statement (all banks have these forms)
B. For franchised businesses, a copy of franchise contract and all
supporting documents provided by the franchisor
C. Copy of proposed lease or purchase agreement for building space
D. Copy of licenses and other legal documents
E. Copy of resumes of all principals
F. Copies of letters of intent from suppliers, etc.

 

Want to start an online business?

The first step to do is think of an internet-business model for your perspective site.  Then think of how to generate traffic (visitors).  Lastly, you will have to consider how to monetize your website once you are receiving traffic - a lot of web entrepreneurs turn to affiliate marketing to generate income.