|
|
|
|
|
Starting a Business FAQs
Where can I learn about starting my own business?A good place to learn more about starting your own business would be to attend one of the many First Step Workshops offered across Pennsylvania or take our free Online Tutorial for Starting a Business. Visit our Starting a Business page for more resources to help you on your way. What basic skills do I need to run a business?The basic skills include a working knowledge of record keeping, financial management, personnel management, market analysis, breakeven analysis, product or service knowledge, federal, state and local tax knowledge, legal structures, and communication skills. See the Kauffman Foundation's take in Making of a Success Entrepreneur publication. What business should I choose?Usually, the best business for you is the one in which you are most skilled and interested. As you review your options, you may wish to consult local experts and businesspersons about the growth potential of various businesses in your area. Matching your background with the local market will increase your chance of success. What initial costs should I consider?Initial costs are one-time expenses that are needed to set your business in motion. There's no way you can start and build a successful small business if you don't have the funds to back it up. Start by making a list of ALL your initial costs, no matter how small or insignificant.
It's not enough to consider how much a large piece of machinery costs. You also need to think about the costs involved with transporting it or setting it up. Everything needs to be accounted for! Then consider your ongoing costs (expenses you anticipate paying again and again). How long will it take to start a small business?As long as it takes you to complete your feasibility study, prepare your business plan, gather your money, buy what you need to buy, and arrange your business operation affairs. This could take a few weeks or many months. If you have difficulty with any of these items, the time to learn and solve problems must be added. How can I get my business certified as minority or women owned?On a Federal level, Congress considers a minority-owned business as generally anyone other than white. The business must be owned and at least 51% controlled by one or more minorities. Women are not considered minorities. It is a self-certifying process and no paperwork needs to be filled out. To learn more about women or minority owned businesses you may consult the Pennsylvania Bureau of Minority and Women Business Opportunities. What insurance should I have?An important aspect of your business is a well-planned insurance program. Types of insurance you should consider are:
Should I buy a franchised business to start?Approximately 40 percent of present-day retailing in the US is done through the franchise method, which makes owning a franchise an appealing option. There are definite advantages to starting out with a franchised business, but it is important to be knowledgeable about the different kinds of franchising options available to you. Some offer fair value for what you pay and others are rip-offs. Get legal or business counseling advice before purchasing a franchise. Should I buy an existing business to start?The advantage of buying an existing business is that it is already established in the market. It has customers and is carrying on business. You avoid the hassle and expense of starting from scratch. The trick is making it fit your desires and capabilities. Is it the kind of business you want? Can you afford it? Can you operate it? How do I start a home-based business?If you are entertaining the idea of having a home-based business, contact your city or county planning and zoning department, depending on whether you live within city limits or not. Contact them before you start the business, not after. They will inform you about the requirements for a home-based business. What form of business do you recommend for a new business?Each form, sole proprietorship, partnership, or corporation, has its advantages and disadvantages. The one you should pick depends on your circumstances, including:
|
