Business Start-Up Guide

Business Start-Up Guide
Starting a business?  Here are 16 steps that you can follow to vastly improve your chances of success and avoid many of the usual and customary "set-backs" as your business is getting off the ground.

STEP 1 - PRELIMINARY BUSINESS ABSTRACT:
Prepare this short, concise document as an overall foundation to work from. Include a statement concerning the proposed scope and nature of the business and its products and services, the basic objectives of the business, and the history and/or rationale that led to the formation of the business. The purpose of this step is to get focused.

STEP 2 - LEGAL ORGANIZATION AND REVIEW:
The purpose of this step is to formally organize your company as a proprietorship, partnership or corporation. Formal organizational and registration forms should be prepared and filed; including trademark and/or service mark registrations, tax ID number applications, d/b/a certificates, in addition to the formal filings of the entity on a state and local basis (as applicable).

STEP 3 - PRINT PACKAGE DESIGN:
It is important that you company grows with an appropriate, professional and cohesive print image. At the very least, adopt a logo design and prepare beginning letterheads, envelopes and business cards for initial communications, correspondence and contacts. If you do not yet have a formal business location, establish a PO Box to get started.

STEP 4 - FINANCIAL STRUCTURE:
Address and resolve these basic concerns:
* Does your company need financing?
* If so, how will you obtain the financing?
* Are you certain that your company will generate adequate profits?

STEP 5 - OUTSIDE SERVICES:
The professional community that you surround yourself with will go a long way toward your future success or failure. Within a financial framework that you can afford, determine who will be your company's attorney, accountant, insurance agent, vendors, suppliers, contractors, etc. Look toward establishing long-term relationships with these people.

STEP 6 - MARKETING PLAN:
Determine and document the following:
* detailed description of your company's products and/or services 

* the market 

* customer profiles 

* the rationale, formula, and/or methods of pricing 

* the distribution plan, sales delivery procedures; and 

* a strategy for advertising and promotion.

STEP 7 - CASH FLOW PROJECTION:
At this point in development, there should be enough information to construct a meaningful cash flow projection for the next 12 months. This is one of the most critical aspects of getting your business off the ground.

STEP 8 - BUDGETS:
The budgets that emerge from the cash flow projections are the guidelines that will permit your company to operate in an environment with ongoing attention being paid to profitability. These budgets will constantly change, but they must be implemented to establish financial control.

STEP 9 - ORGANIZATIONAL CHART:
A good organizational chart adds a sense of stability to a growing organization by clearly delineating a chain of command and a basis for delegation. An organization without an organizational chart is usually plaqued with unnecessary personnel problems.

STEP 10 - JOB DESCRIPTIONS:
Your company's productivity, efficiency, and profitability will be greatly enhanced by the clear-cut direction offered by job descriptions. Properly developed and well-thought, job descriptions will clearly define the scope of responsibility and authority within a given position; as well as support the organizational chart.

STEP 11 - ACCOUNTING SYSTEM:
The design and implementation of an adequate accounting system is one of the most critical building blocks for a new firm. As soon as possible design a "Chart of Accounts" that is tailor-fit to your firm (your accountant can help). This is not only for the purpose of tax return prepartion but, more important, to provide you with a foundation to obtain meaningful financial reports for internal management use.

STEP 12 - BREAKEVEN ANALYSIS:
The purpose of this step is to merge all available information about future fixed and variable costs with production and sales information to determine the break-even point. Break-even analysis provides a valuable insight to decisions regarding debt structure and other operational considerations.

STEP 13 - FINANCIAL MANAGEMENT:
This step addresses itself to the actual systems and procedures for processing receipts, controlling accounts receivable, controlling accounts payable, banking procedures, disbursements procedures and other financial management items. Set up these procedures so that they become routine on a daily basis.

STEP 14 - OPERATIONAL FLOW CHARTS:
Flow charting a procedure provides a means for analysis, identification of bottlenecks, factors which affect profitability. At least the most critical operations of your firm should be flow charted initially.

STEP 15 - PERSONNEL MANUAL:
In any business, the most important resource is its people; whether your company will have just a few employees, or many. Well-thought personnel policies and procedures are the keys to minimizing personnel problems and turnover while enhancing productivity and profitability.

STEP 16 - TAX REVIEW:
Tax planning is an activity which most new businesses don't consider until it is too late. No matter how your business is structured, you are in business with the government as a "partner." Get off on the right foot with the local and state departments as well as the Internal Revenue Service.

Please contact this office for details and assistance with any or all of the above. We can guide you and relieve the tedious attention to detail so you can do what you do best.