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Getting Down To Business The business plan The business plan is the structure upon which the business is built. "No business plans to fail, but many firms fail to plan". Most businesses fail because they did not plan well enough. A business plan can help lay out a logical series of steps for the beginning entrepreneur, or for the expansion of an existing firm. The business plan includes a description' of the proposed enterprise, marketing plans, and details about location and personnel. A financial section shows financial statements, projected income and expenses; and details about any borrowing or investment activity. The business plan serves as a checklist and as it is updated and modified, can help chart the course of the business. Program objectives To create an understanding of the need for business planning. To create the required understanding among educators so they may help entrepreneurs learn how to gather necessary information and assemble data to create a business plan To help educators and counselors create within entrepreneurs the ability and confidence to use planning as a tool; to present planning documents to lenders and investors, and to use, revise and evaluate plans. Intended audience Educators from land-grant institutions, information agencies and other sources of teaching and counseling to the general public. Content taught and methods used Content Reasons for creating a business plan and an overview of the process. Details of each section and requirements of lenders and investors. Financial documents. Methods Lecture/discussion, workshop sessions, visual presentations. Samples of plans and their results. Impacts To help educators more effectively carry out local programs which will lead to business success and more stable communities. Person responsible for program David Sharpe Community Development Specialist email to:ACXDS@montana.edu Community Development 101 Taylor Hall P.O. Box 172580 Bozeman, MT 59717-2580 406-994-2962 406-994-5417 FAX Diane Harn, 106 Taylor Hall email to: dharn@montana.edu Should you be an entrepreneur? Do you want to start a business or just expand an existing one? What are some of the qualities needed to be a good entrepreneur? You must be a self-starter, willing to control and direct events. You need to have great stamina and be in good health, to put in long hours of very hard work. You must be willing to defer rewards until the business is on its feet Your life must center on the business in an active, urgent manner What are some or the abilities you need to be in business? You must have a comprehensive awareness of the entire situation. You must be able to conceptualize every detail and every event far into the future, and to know when each must fall into place, who will carry out each little detail, and what it costs. You must be emotionally stable and able to make-good decisions under stress. How can you prepare for future entry into a business? Gather ideas and information about a prospective line of business. If possible, work in the business as an employee or an apprentice to gain experience. Begin a business plan, plugging in answers and details as you become more knowledgeable. Outline of the business plan Why have a business plan? Many businesses fail because of inadequate planning. Time, money, interest, and opportunities tick away. with the clock, regardless of how prepared you may be. The time and effort required to write out and follow a business plan will help avoid many problems. Nonprofit groups should also use business planning. Preparing and presenting a business plan indicates to lenders, investors and others that you are serious, conscientious. and professional. What is a business plan? It is a written document, practical, flexible and condensed to include necessary information. It can serve as a checklist and should be periodically reviewed and updated. The main parts of a business plan Coversheet Statement of purpose Table of contents Part one-----The plan Description of the business Market analysis and planning Operations and location Ownership and management Personnel and service Part two-----Financial data, and loan/investor request Summary of investment needs Loan request and explanations Use of funds Financial statements Part three: Supporting schedules and appendices Start with a pencil copy of your business plan in a loose-leaf notebook. Condense relevant information and prepare. it on a word processor or typewriter. Attach reduced copies of maps and drawings, and assemble the material as a package. Before starting a business Setting your goals. We set goals every day, whether we realize it or not A goal is the final outcome of our planning efforts. Some guidelines follow. You must develop your own goals. mink about them while you are working or relaxing. Discuss them with your family then begin to jot down some goals in this space or on separate sheets of paper. Goals should be written, clearly and specifically. Choose a goal from the notes above and write it in greater detail, so it can be measured in dollars or other quantities. Goals can be short-range and long-range, but should be carried out on a definite schedule. It may be necessary to list tasks, time requirements and other needs as you enter information in the Inventory sections that follow. Goal #l _______________________________ Tasks - Start - Finish #1 ___________________________________________________ #2 ___________________________________________________ #3___________________________________________________ #4___________________________________________________ #5 ___________________________________________________ (reproduce as many sheets as needed.) Inventory your management abilities. Families which have been - affected by changes in the economy may wish to consider changes in production and management, or alternative ways to earn income. Look at your own situation. List the assets which can help increase earnings. Education-which you and other family members have completed, or could complete. Skills - those things which you and your family do very well. Hobbies-which you enjoy enough to try in a business venture. Professional skills - for which you are trained and licensed. Other interest - experiences and contacts with others. Inventory your assets and liabilities. You may have facilities, equipment and supplies which may be made available for use in a business venture. You must also keep in mind existing commitments and debts. Land: Productive capacity, water resources, minerals, timber, hunting rights. leases, camping and recreational potential. Facilities: Buildings, houses, wads, ponds and irrigation. Equipment: Vehicles, machinery. tools and other income-producing items Livestock and crops: list livestock and growing or stored crops. Supplies: Wood, metal, fuel, merchandise, seed and other useful materials Liabilities: In order to have a dear picture of where youstand, you may wish to summarize your obligations.: Long-term: Debts for land arid buildings. Yr. acquired - Description - Original Cost - Remaining ________ ______________ ________ ______________ ________ ______________ Intermediate: Debts for breeding stock, machinery, autos. ________ ______________ ________ ______________ ________ ______________ Short-term: Bills, Short-term loans and other debts payable within a year. Description - Payment Due - Amount __________________________ ________ __________________________ ________ __________________________ ________ Other obligations: List when land, machines and labor are in use. and agreements with others which obligates use. _______________________________________________________ _______________________________________________________ _______________________________________________________ Summarize your possibilities. Try some "brainstorming" (unlimited idea gathering) for each member of the family. Name - Education - Talents - Interests -"Possible ideas" __________ __________ __________ __________ ____________________ __________ __________ __________ __________ ____________________ __________ __________ ____________________ ____________________ __________ __________ __________ __________ ____________________ __________ __________ __________ __________ ____________________ Summarize what is available Facilities - Equipment - Supplies ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ Land_________________________________________________________ Enterprise list Existing enterprises- Annual gross - Net sales - profit ____________________ __________ ____________________ __________ ____________________ __________ List of possible alternative enterprises Enterprise - responsible - begin when? - Advantages - Disadvantages ____________________ __________ _____ __________ __________ ____________________ __________ _____ __________ __________ ____________________ __________ _____ __________ __________ What must you acquire to follow up on these possibilities? Cost to acquire - Time needed Additional training: Additional indoor space: Additional outdoor facilities: Additional equipment: Additional supplies: A partial budget. A partial budget is a quick means of determining if this enterprise will provide additional income. Try to figure realistic amounts for each of the four sections, then make a grand total. The Plus Side The Minus Side 1. Added Income 3. Added Costs Total: ____________ Total: ____________ 2. Reduced Costs 4. Reduced Income Total: ____________ Total: ___________ Total Total Pluses: Total Minuses: Total Differences: Your time Evaluating the time and seasons. One of the resources which may be available to you and your rurally is time. Reproduce the sheet below and have each member of the family fill out the schedule. Expand the worksheet below onto a larger set of sheets. or use a system of abbreviations or letters to denote charts and duties. List days, months. or years with farm Work must have priority. Last hours of the day when farm work has priority. Could you eliminate chores or travel? Could you use regular trips to perform other tasks that could earn money? My schedule for an average week Sun Mon Tue Wed Thurs Fri Sat 1-6am _____ _____ _____ _____ _____ _____ _____ 6-8am _____ _____ _____ _____ _____ _____ _____ 8:00 _____ _____ _____ _____ _____ _____ _____ 9:00 _____ _____ _____ _____ _____ _____ _____ 10:00 _____ _____ _____ _____ _____ _____ _____ 11:00 _____ _____ _____ _____ _____ _____ _____ Noon _____ _____ _____ _____ _____ _____ _____ 1pm _____ _____ _____ _____ _____ _____ _____ 2:00 _____ _____ _____ _____ _____ _____ _____ 3:00 _____ _____ _____ _____ _____ _____ _____ 4:00 _____ _____ _____ _____ _____ _____ _____ 5:00 _____ _____ _____ _____ _____ _____ _____ 6:00 _____ _____ _____ _____ _____ _____ _____ 7:00 _____ _____ _____ _____ _____ _____ _____ 8-12 _____ _____ _____ _____ _____ _____ _____ How do I find time to do then things? From your date chart, begin to eliminate less important things, or chores which could be handled by mechanics devices or other people. Make a map of your routine weekly travel. Could you deliver things? Drive a vehicle for others? Change your route and routine in order to make money during those hours behind the wheel? Give others the responsibility for routines and use the time to earn more from your potential. Business plan i. Business name: ____________________________________________ Your name: ________________________________________________ Address: __________________________________________________ZIP Telephone: ( ) _____ -_____________ ii. Statement or purpose: iji. Table or contents: Part one---The plan Description of the business A. Purposes and objectives: 1. what is my business?: ____________________________ a. type: retail, wholesale, service: ___________________ b. status: new, takeover, expansion: c. form: partnership, corporation: 2. Why am I doing this? Why will it be profitable? ___________________ My special competencies are:________________ I will be open:____________________________ My expansion plans win be: _________________ I'm justifying this to my family, investors and customers by: 3. Permits and licenses required may include: Federal: Employer Identification number Employer Quarterly Return Annual Federal Unemployment State: Workman Compensation Employers Income Tax Registration Application for store license Local: Zoning and sanitation permits (See others in "A list of permits and licenses which may be required, "or consult your State Dept. of Commerce) II. Market analysis and planning A. Description of the industry 1. Industry characteristics: ______________________________ 2. Market trends are: ______________________________ B. Market segment 1 The market I intend to enter is:_______________________ 2. The needs of consumers in this market are: _____________ 3. The size of the market now is: _______________________ in the future it will be: ____________________ 4. The size and area I intend to market in is:______________ (Maps are: attached, or in the appendix) C. Share of the market 1. I project my market share to be:______________________________________________of the _________ 2. I plan to secure and hold the market by: ______________________________________________ 3. The needs and habits of buyers are: ______________________________________________ D. Competition 1. My competitors are: Names - Locations - Advantages - Disadvantages ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ ____________________ 2. I win overcome competition by: 3. I will meet future competitors by: E. Market plan Profiles: Customers, geographic area; spending habits: Details of market strategies are: Details of market penetration, and marketing strategies are: III. Operations and location A. Operations Those responsible for startup are: My suppliers and sources are: (expand 1 & 2 as needed) Name - Address - Telephone - Products _______________ __________________ ________________ ____________________ _______________ __________________ ________________ ____________________ _______________ __________________ ________________ ____________________ B. Location 1. My location will be. 2. Advantages of my location are::_____________________ Disadvantages are: ______________________________ Traffic studies indicate: __________________ C. Ownership and management Resume for myself and other participants are attached (see guide for ways to write a good resume) Organization charts and a list of investors, partners and officers are attached. Position descriptions include:__________________________ (Give details of duties of officers and partners) The line of succession. should anyone be lost, is: IV. Personnel and services A. Employees: (as needed, attach a table of employees needed and a list of skills, or position description for each.) B. Employee policies: Use outline of existing policy manuals. 1. My employee policy manual includes: details of how I will recruit, wages and benefits. Part two-Financial data and loan/Investor request I. Summary or investment needs (List names, addresses, telephone numbers, form of business, source and amount of funds.) II. Loan request and explanations A. Amount needed in addition to our equity is: B. Terms requested are:_____years, at_____% interest.(Repeat for each loan if more than one is requested) C. Collateral offered is: (Make up a separate chart, as long as is needed) Item - Location - Ownership - Value ____________ _________________ ________________ ____________ _________________ ________________ D. In summary, the purpose of this loan is to acquire: and finance: III. Summary of funds (Each source and use should be documented by legal papers, notes, copies of stock, real estate contracts, bids and construction or property documents, orders and budgets for operations.) A. Sources of funds: Our equity: Our venture capital: Loans Other investments Total funds available: B. Uses of funds: property to be acquired construction required Capital goods required Inventory to be acquired Operating capital needed Total funds to be used Balance: IV. Financial statements (See Appendix E for examples of standard financial summaries which may be used as a guide) Personal Financial Statement Business Financial Statement Income Statement Income Statement Forecast Farm Cash Flow Statement Break-Even Analysis Part three-The appendix to your business plan In this portion, you can include your resume, any drawings or maps, architectural drawings, and other details which you may not wish to include in the other parts of the Business Plan. You may also wish to place the explanations for your financial figures here, such as: letters from the utilities estimating your probable expenses, projected tax assessments, insurance worksheets, summaries of contractor's bids and other hard data to justify your figures. Include also: copies of corporate or partnership documents, copies of authorizations by the Board of Directors to assume debt or undergo obligations, and any other relevant legal documents. Copies of appraisals, corporate resolutions and anything else required by lenders or investors may also be placed in the appendix. Steps in starting a business Preliminary Form the idea Begin the idea Find partners Secure capital commitments for the equity you must have Select the appropriate professionals who will advise you Attorney (Never make a contract, lease, agreement or property acquisition without counsel.) Accountant (Along with the attorney. the accountant can help setup your organization, as well as taxes and books.) Architect and other consultants. Assemble facts Census data Marketing (see next) Locations Contractors Beginning steps Agree on capital Meet with attorney and partners, to complete agreements Assure that all cash commitments are with a trustee Enter details in your BUSINESS PLAN concerning the shares by each partner and your present financial status, provide periodic reports of income and expenses If a loan request is planned, be sure to have 25-30 percent of the total business requirements as cash or value In hand. Use capital for: Land, buildings and professional services. Preparing a loan package: Usually 70-75 % of the total needed. Finish the business plan, but prepare to use and revise it. Finish preliminaries and prepare for action steps to open your business. (Map out details on a chart and check off.) -------------------------------------------------------------------------------- Finish the business plan, but prepare to use and revise it Finish preliminaries and prepare for action steps to open your business. Other notes: HOW DO YOU PUT ALL THESE IDEAS TOGETHER? A method for comparing potential enterprises is shown below. By assigning values to each block of information under a possible product or service (individually or in family conference) it is possible to develop a total score which may help guide further decision-making. WORKSHEET (Place a value from 1 to 10 on each line; 10 being the highest) (Example) Mink Farm Family preferences 6 _____ _____ _____ _____ Willingness to risk 5 _____ _____ _____ _____ Good use of existing real estate 5 _____ _____ _____ _____ Good use of labor 7 _____ _____ _____ _____ Makes good use of present equipment 4 _____ _____ _____ _____ Uses our supplies 5 _____ _____ _____ _____ Inputs are readily available 7 _____ _____ _____ _____ Good markets? 8 _____ _____ _____ _____ Adequate funds? 6 _____ _____ _____ _____ Fits with our other enterprises 7 _____ _____ _____ _____ TOTAL: 60 _____ _____ _____ _____ (1 to 10 on each line; 10 being highest) _____ _____ _____ _____ Discuss the score with those who will be involved if there appear to be some clear preferences. Concentrate your research on those. You will need to find information on markets1 production techniques financial matters, legal and licensing requirements and other information Appendix A. Your resume (May be included in the Business Plan.) Normally, a resume should be only one or two sheets. Name: Telephone Number: (Work and Home) Address: Town State and Zip. (Date of birth, place of birth, or citizenship, male or female, may be required in some cases, and not in others) Education: (Highest level first) School Location Subjects Diploma (Year or Degree) Experience: List present or latest job first, then go backwards, if employment is home, farm or volunteer, answer the same way.) Position Employer Location Dates Responsibilities Other: (List publications, special projects or responsibilities, offices held, memberships, awards, special skills and licenses, and other information of value to a lender or potential employer.) References: If required list three or four people who agree to answer questions or send a letter of recommendation.) Title and Name Address Telephone Personal: In some cases it may be relevant and proper to list your hobbies, and other interests. It may be relevant to include information about your spouse and family. References The Small Business Reporter: A series of 20 publications from: Bank of America, Dept. 3401, Box 37000, San Francisco. CA 94137 Incorporation, A Guide for Small-Business Owners, Carol Vefla and John McGonogle,Jr., Amacom Books, 135 W 50th St, NY NY 10020 Guide to Innovative Resources and Planning/or Small Business, National Technical Information Service, 5285 Pon Royal Rd, Springfield, VA 22161. Dun and Brattreet, Publishes "key ratios" and "Cost or Doing Business", 99 church St., NY NY, 10007. Robert Morris and Associates, Ratios for 350 lines or business. Philadelphia National Bank Building, Philadelphia, PA 19107. Contemporary Cash Management, Paul 3. BeeMer, Published by John Wiley and Sons, New York 1978. Business Planning Guide, David H. Bangs, Jr., and William R. Osgood, 1979. Upstart Publishing, Inc., Portsmouth, NH, 03801 The Entrepreneur and Small Business Problem Solver, William A. Cohen, 1983. John Wiley and Sons, Inc., 605 Third Ave., New York, NY 10l58 Small Business Management, Operations and Profiles, Dennis H. Tootelian and Ralph M: Gaedeke, 1978. Goodyear Publishing Co. Inc., Santa Monica, CA 90401. Strategic Planning and Control Techniques for Profit, Roben E. Pritchard and Bruce M. Bradway, 1981. Prentice-Hall, Inc.. Englewood Cliffs, NI, 07632, Venture Capital and Small Business Financing, Clark Boardman Co., Ltd., 435 Hudson St., NY. NY 10014. U.S. Small Business Administration, A list of current bulletins may be ordered from: SBA, Federal Building, Helena, MT 59601. Periodicals and journals INC., Inc. Publishing Co., Box 2538, Boulder, Co 80323 Journal of SmaII Business Management, Bureau of Business Research, West Virginia University, Box 6025, Morgantown. West Virginia 26505 American Journal of Small Business, University of Baltimore, 1420 N Charles St, Baltimore, MD. 21201. Business to Business, 3740 Campus Drive, Newport Beach, CA 92660 Small Business Magazine, Richboro Press. Box 1, Richboro, PA 18954 Small Business Advisory, Financial New Association, 1940 Biltmore St, NW, Washinton, DC 20009 The Sellers Creed I will not make sales. I will make Customers. I will target the heart of my Customer. Never their wallet. My Customer is the lifeblood of my business. Though I may sell my Customers what they want, I will deliver what they need and make their lives better. Courtesy and Service are cornerstones of my relationship with my Customer. I will view complaints as opportunities . . . to create lifelong Customers. The quality of my products and how I treat my Customers will determine the level of My Success. My prosperity will come from people. My best advertisement is my product, and, the Customer service behind it. Making money without making friends is not good business. I will guide my business with the perfect blend of heart and mind. I will make Integrity my trademark. After all, isn't integrity all I have and all I will be remembered for? I will compete only against myself as the only true measurement is against myself. It is fine to fail. In fact, it is most often a requirement of success. My reputation is everything - my ego, nothing. Every pittance I earn unjustly is a debt of fortune I must repay. No matter the fame or fortune that may follow me, My values, My family and My friends must remain at the very core of my being. Better I be trusted and respected, than rich. Better I be a dolphin swimming with sharks, than a shark.

Business Start-Ups; A Short Manual Introduction America is coming home to work. Home-based offices are becoming the wave of the future. Tens of thousands of workers are opting for this way of life, a life in which they can make their own hours, commute to work in seconds, make their own choices and become their own bosses. For many the home office is becoming the location for a full-time job and the primary source of income. For others it is a part-time venture. Many start on a part-time basis and grow their business into a full-time operation. While working at home has an almost irresistible appeal to many, and many have some big misconceptions of what it is like, here is some very useful information that can help you get started successfully. Legalities of Working at Home Zoning Before setting up your new business it would be advisable to check on the legal status of your business. You need to check zoning laws for your community which may dictate if you can legally operate a business from home. We realize that many businesses never check on zoning for their home-based business and chances that they ever get into difficulties with the law are probably pretty slim. If there are no changes in structure and you do not have customers and or employees enter your home, regulations will tend to be far more easy. Laws and regulations change from community to community, but the following 5 factors will generally be regulated items: 1. Separate business and private entrances. 2. Square footage of the home which is taken up by commercial space. 3. Employees working in the home. 4. Certain occupations such as jewelry or clothing 5. Storage of commercial goods, especially any hazardous materials. Here is an important suggestion: keep relations with your neighbors on a friendly basis. Your neighbors will soon become aware that you are working at home. Some may even be envious, and yes, unfortunately zoning authorities will generally become aware of home office zoning infractions through a "friendly neighbor". Business License Most cities or counties require businesses to be licensed. Some home-operated businesses, however, are not required to have a business license. Check with your local City or County Clerks Office to obtain regulations for your locality. D.B.A. Registration If you are using your own name as your business name it will not need to be registered, but if you use any other name, or even your abbreviated name, almost all localities require that you register the name. This is called a fictitious name registration or D.B.A. "Doing Business As" registration. If your name is: Richard E. Heade and you name your business Dick Heade or Richard E. Heade Enterprises, you will not have to register it, but if you call it: DEH Enterprises you will generally have to register the name. Most states have a name search bureau which is a part of the state government. You will generally be able to call this office to see if a given name has already been registered to someone else in the state. This is important to do, or it could be costly later. If you give your business a name which is already registered to another company, the other company may demand, and even take legal action to make sure you comply, that you cease to use the name. Your Company as a Legal Entity Businesses are most commonly set-up as one of the following entities: The Sole Proprietorship; Incorporation; Partnership Most new businesses choose the Sole Proprietorship. It is the least complicated. It requires no paperwork. The proprietor you, or you and your spouse as the owner, or owners, are taxed for all net profit from your business. You add the income of the business to other income, or deduct the business loss from other income. Your tax adviser can give you specific information. The disadvantage of the Sole Proprietorship is that as the owner you can be held fully liable in a lawsuit. An incorporation, on the other hand, will give you some protection. In this case the "INC" rather than you is the legal business entity. If you are starting a business that tends to have liability exposure the corporation may be the way to go. In this and other legal questions, only your attorney can give you competent legal advice. Partnerships are generally chosen when unrelated individuals own a business. A partnership should be set up by an attorney, or all kinds of problems can develop later. Designing Your Work-space First, you must determine how much space you need. Chances are what you may initially think is quite large may be crowed or not enough space. While many businesses are started from a corner of the bedroom or kitchen, if the space is available it would be far better idea to take a spare area of the house and convert it into your office. There may be space in the basement, garage, or a spare bedroom. Having a separate space is more efficient and will make for maximum efficiency. It is also psychologically important. You do not want home activities to interfere with your business, or vice versa. Friends and family will need to be told politely and firmly that business hours mean business and dropping in, or calling to chit chat is not acceptable. Psychologists suggest that you work "from" home not just in your home. There is a danger of becoming isolated. Inasmuch as time allows, participate in seminars and local business activities and organizations. Financial Planning It is said that owners of new businesses never have enough time or money. The majority of small businesses which do not succeed will fail because they are not properly financed. n your financial planning carefully review all required start-up expenses as well as on-going expenses before revenue will be generated. Estimate your profit margins and all fixed and controlled expenses. Almost all entrepreneurs will tend to be much more optimistic about their estimate of the financial performance of a business taken what is necessarily realistic. There are always unforeseen expenses.It is a good idea to only invest in absolutely necessary expenses. This applies to furnishings, supplies and all equipment. Computer equipment in recent years has become outdated within a short period of time. So, if what you acquire will serve you well for 2-3 years will be able to upgrade your equipment later on. Your emphasis should be on conserving capital. As your business develops, unexpected hurdles will come along and periods of low revenue. Your conserved capital will make it possible to keep your business operating during these times. Have A Business Plan? While writing a business plan can be made into a highly sophisticated undertaking especially by large corporations, its easy to do when done for a new or small owner operated-business. Essentially, you will be committing your plan to paper. As you do so your thought will become more formal and concrete and this will remendously assist you in the development of your business. If you are considering to obtain financing for your new business either through a bank or the SBA, a formal business plan will be a necessity. Home-operated businesses will have a much more difficult time in obtaining financing. Taxes and your business As in all undertakings of life from birth to death and beyond, the IRS will be there to watch over you. Almost all small, home-based businesses will start out as "Sole Proprietorship." This legal status is best for ease of handling and for tax benefits. Your net business income or loss becomes an addition or deduction to other income declare at the end of the year. Careful record-keeping of all business revenue and expenses is a must. Keep a separate business checking amount for your business. Do not intermingle business and personal expenses. Other special tax benefits and regulations apply to home-operated businesses. You should obtain professional advise from your tax adviser. Free Publications available: "Record-Keeping For A Small Business" IRS publication 583. Call the IRS 1-800-829-3676. "Business Use Of Your Home" can also be obtained free from the IRS. "Tax Guide For Small Business" is an annual IRS publication #334. It is also free. Insurance One disadvantage of being self-employed is not having health and disability insurance. You may also need liability insurance. Your homeowners insurance covers your belongings in your home, but it may not cover all business inventory and equipment. Check with your insurance agent to make sure you have the right coverage. Factors that will Determine Your Success Do Your Homework The more you know about your business, the better your chances of success. Attend seminars and join trade associations. Read books and trade publications. If you do not have a business background a business introductory class at a local college would be advisable. Don't forget the resources available at you local public lbrary! Planning is Key to Your Success You and your family's future and livelihood is at stake. So your decision and planning to start a business are very serious matter. Establish a long range plan which encompasses your business and financial plans. You should obtain legal or financial advice from an attorney or accountant before committing to nay long range or major financial transactions. Agreements with suppliers or customers should be put into writing. You Must Wear Many Hats Small business owners over time can become experts on a variety of subjects. At the start the most important aspect is the mind-set. Your communication to the rest of the world through all available means will determine your success. here is an abbreviated marketing check list: Telephone equipment Promotional Material Advertising; (Don't forge the Yellow Pages); Stationery; Direct Mail; Membership in Organizations; Direct Sales. Invest in Good Equipment The right equipment will make your work easier and your business more efficient. To conserve cash used equipment should also be considered. So What Are Your Chances? The better you think they are, the better they generally are, and don't forget that among thousands of others: Apple Computer, Domino's Pizza, and Walt Disney all started as home-based businesses. Resources/Associations There is a great deal of expert advice and resource material available to you. Much of it is free of charge. (Much of it is available at nmo charge, right here at MSN Entrepreneur Community!) A variety of literature is available, both excellent books on all business subjects and various magazines. Your local Chamber of Commerce often sponsors classes. Banks can give you advice, or can be used as a sounding board. Local schools offer a variety of classes of interest to business owners. Don't forget the Public Library. Last, but not least, don't forget the U.S. Government. SBA (small Business Administration) offers a range of services such as loan gaurantees, financial consulting, computer and technical consulting services and a variety of publications. This also includes your area's SBDC! Check your local telephone pages, or contact: - Small Business Administration 1441 L Street NW Washington, DC 20416 (202)659-6000 - United States Chamber of Commerce provides literature, telephone referrals and other services to small businesses. Contact your local Chamber of Commerce or: - United States Chambers of Commerce 1615 H Street NW Washington, DC 20062 (202)659-6000 - Internal Revenue Service offers a variety of services which includes workshops, films and publications to clarify tax matters for small businesses. Contact your local IRS office or: - Education Branch, Taxpayer Service Division IRS, Department of the Treasury 1111 Constitution Ave.,NW Washington, DC 20274 1-800-424-1040 - Better Business Bureau (BBB) The BBB can be an important ally in checking on potential suppliers and other businesses. Check for telephone listing in the city where the company you are checking on is located.