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First
Steps to Starting a Business
Most business
ideas become a reality with enough
research,
planning, and money. This list will start you thinking in the
right direction. A potential investor, lender or financial officer
will require a
business plan and other
supporting documents before funding your business idea.
Start
gathering the following information:
-
A complete
list of the equipment and fixtures that will be needed to open
the doors of the business. This includes all furniture, office
equipment, machinery, appliances, tools, shelving, display cases,
storage etc. along with their estimated purchase price.
- A list
of the supplies and/or retail inventory that will be needed
to operate the business on its first day of opening. Include
an estimate of wholesale costs.
- If buying,
a copy of the building's performa including description, purchase
price, and a copy of the written offer. Copies of tax assessed
values of any land or buildings that will be purchased and an
outside appraisal of any property included in the sale. In
Bell County, this can be obtained by accessing
www.texastax.com
and selecting "Bell County" from the list of
options. It will be helpful to know the proper address or
legal description of the property.
- If renting,
an estimate of the square footage needed, the deposit and the
monthly rent.
- If buying,
obtain a signed declaration of the land and/or buildings' condition
from the seller. In addition, arrange for an outside evaluation/inspection
of the key features of the building, which includes:
- If renting/leasing
a facility obtain a copy of the agreement, with the tenant and
the landlord's responsibilities for improvements, maintenance
and repairs outlined.
- A list
of any repairs, renovations or remodeling needed to the facility
your business will be using. Include a description, specs, drawings,
and cost breakdown.
- Written
estimates from professional sources on any product development,
engineering, or design work needed.
- Your current
credit report.
- Your most
recent income tax returns. Up to three years would very
helpful.
- Your resume
and resumes of any other people who will be key to the operation
of the business.
- A
business
plan you have prepared for the business you are buying that
contains the following sections:
- A
description of your business concept.
- A
description of how you plan to
structure
and manage the business.
- A
research report defining the
markets for the business and their demographics. Describe
how you plan to reach and sell them. Include associated
costs in an attachment.
- A summary report of initial
start-up cost estimates for items and services needed
to launch the business, compiled from the lists described
above.
- Projections
for three years of cash-flow/operations
budgeting estimates for both monthly expenses and monthly
sales/income with the resulting estimated profit.
For assistance
in gathering these documents, writing your business plan, and
seeking funding, make an appointment with one of our counselors
by contacting our office.
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