tools and resources for small business start-up

8/2/2019 Tools and Resources for Small Business Start-Up

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Running head: TOOLS AND RESOURCES FOR SMALL BUSINESS

Tools and Resources for Small Business


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TOOLS AND RESOURCES FOR SMALL BUSINESS 2

Tools Available for Small Business Owners

According to SBA.gov, there are some important steps in starting a small business, like first

thinking about starting the business, find a mentor or counselor, write a business plan, establish

the business, prepare the finances, loans, grants & funding, business law & regulations,

marketing the new business, and local resources that can assist a small business owner. In

starting a business, the business owner needs to have strong management skills, since the success

of the small business is closely related to how the business owner prepares and manages the

business. And, good management skills are the fundamental source of growth.

There are many tools available to assist a small business from dream to reality. SBA.gov

has on-line podcasts to guide the business owner with ways to run the business, offer advice on

marketing, sales, human resources, and other areas of concern for a new business owner.

SBA.gov also offers online courses in starting a business, managing the business, government

contracting, and even womens business center to level the playing field with respect to

woman entrepreneurs. Woman face unique differences throughout the process that need

guidance, SBA.gov offers this assistance.

Thinking about Starting a New Business

In order to start a new small business, the individual needs to think about the pros and cons of

the business to make a sound decision. There are 10 steps to starting a business;

Step 1- Write a Business Plan that can guide you through the process, like description of the

business or what is the purpose of the business? Marketing or how will the business advertise or

market the new business? Competition or who is the competition? Operating procedure or how will

the business work internally and externally? Personnel or who will work in the business? Financial


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data or where is the capital, cash flow, loans, business insurance, and other financial decisions to

be made? Location or where is the business going to operate? These are just a few of the areas of

the plan, but to have the plan be professional, one should research or get advice on the proper

business plan writing.

Step 2- Get Business Assistance and Training to prepare the business accurately to secure

financing, obtaining the right location, expanding, and even relocating. These are areas in which

the new business owner will need assistance to guide them through these changes successfully.

Step 3- Choose a Business Location is another area that a successful business owner will definitely

seek advice since there are zoning regulations, tax differences in differing counties and states,

community size and trend, accessibility, and centralized.

Step 4- Finance the Business is a way to find ways of assisting the new small business owner with

obtaining federal assistance and local assistance in areas like grants and loans.

Step 5- Determine the Legal Structure of the Business is key to legal issues. There are differing

ownership titles that the small business owner needs to know and understand before making the

final decision to be sole proprietorship, partnership, Limited Liability Company, corporation, S

corporation, nonprofit or cooperative. The advice of legal representation will assist the small

business owner, but may not be necessary with the other resources available through SBA.gov.

Step 6- Register a Business Name or also known as DBA, doing business as, is how the business

obtains the right to open the business and operate with a business name.

Step 7- Get a Tax Identification Number obtained from IRS and the state in which the business

operates or registers to do business.

Step 8- Register for State and Local Taxes with a tax identification number, filing for workers

compensation, unemployment, and disability insurance.


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Step 9- Obtain Business Licenses and Permits in order to operate legally, the small business must

have the appropriate licenses and/or permits to operate in that specific locality.

Step 10- Understand Employer Responsibilities is a key aspect to legal issues that the small

business needs to take in the hiring, firing, and laying off of employees.

Prepare the Finances

According to the IRS, more than 80% of small businesses use accountants to prepare their

returns. But, tax return preparation isnt the only reason to use an accountant (Weltman p. 1).

Since, finances are the life line of the business, it is best to have an accountant or CPA that can

assist the new business owner with the cash flow and monitor it to be able to handle any

spending issues as they arise and assist with resolution before it is too late. This is the most

important factor to staying alive in todays market. The small business owner needs to be able to

protect their assets as well as maintain the new business without further impact to the business

owners bottom line. In order to stay in business, you have to have a good accountant or CPA

that can keep sound management skills with respect to the finances.

Another key aspect of preparing the finances, how are funds raised for the new small

business? The small business needs to write a business plan and present to government agencies

for grants and loans. Another way to keep your initial investment low is with government

surplus. This allows new small business owners the access to auctions and sales from excess and

surplus items that the government has on hand and wishes to sell at a reduced rate. However, there

are many programs available to assist a new small business with funds through various

resources, like environmentally friendly green business grants and loans or other specialized

audiences.


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Conclusion- Get Started

In order to be a successful small business owner, there are free resources available to assist

with everything from just thinking about starting a business to marketing to staying in business

in todays market. A key element of a successful business is the management, and how the

management skills are learned will have a large impact on the business, so utilize the free

podcasts, on-line courses, and mentors. They may make the small business a large business. And,

SBA.gov has great resources to make small business owners great managers. If you follow the

steps to starting a business, there is a good chance of the business being one of the finest

businesses in the area. Utilize the resources; they can help the small business become a

successful business.

References:


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Horngren, C. T., Sundem, G. L., Burgstahler, D., Stratton, W. O., & Schatzberg, J. (2008).

Introduction to Management Accounting: Ch. 1-17 (14th ed.). Upper Saddle River, NJ:

Pearson-Prentice Hall.

SBA.gov U.S. Small Business Administration retreived on January 21, 2012 from

http://www.sba.gov/category/navigation-structure/starting-managing-business.

Weltman, Barbara. (2010) 5 Things to Talk to Your Accountant Aboutretrieved on January 23,

2012 from http://community.sba.gov/community/blogs/guest-blogs/industry-word/5-things-

talk-your-accountant-about

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