| What an exciting feeling you must be having | | | | registration as you will need it at the bank |
| at this time. You have finally made the | | | | to open a business bank account and possibly |
| choice to "chuck it all" and go into business | | | | for other things.I wish to remind you that |
| for yourself. You dream of the freedom from | | | | what I offer are general guidelines and |
| your unreasonable boss and the wonderful | | | | information to help get you started. It is |
| feeling of writing your own paycheck. It's a | | | | always a good idea to discuss your options |
| lifelong journey that has to start at the | | | | with an accountant or lawyer to determine |
| first step - the very beginning.It is my goal | | | | what is best for you and your individual |
| to take everything all those books say and | | | | circumstances.5) Obtaining a Business |
| boil it down to a real action plan that is a | | | | AddressThis is a step that you can skip if |
| simple as it can be. Basically making it like | | | | you simply plan to use your home address or |
| a recipe. You really don't need all that | | | | an existing business location as your |
| filler; you just need to know how to get | | | | address. But in most cases, you'll start |
| started. A bunch of fluff isn't going to | | | | working out of your home and probably wish to |
| help; in fact it slows you down. Instead of | | | | protect your privacy and create an aura of |
| reading, you should be doing!This section | | | | having a larger business by getting a new |
| will be those most difficult first steps of | | | | business address.This process is as simple as |
| just getting started. Effectively launching | | | | going to the post office or a private mail |
| your business and then growing it for success | | | | box center (PMB) such as The UPS Store. I |
| are their own unique steps in the future. For | | | | suggest a PMB over the post office because |
| now, I'll have to assume you have an idea | | | | you can usually use a street address and list |
| already and have researched it enough to know | | | | your box number as a "suite" to help create a |
| that it is a good idea and has a bunch of | | | | more positive image versus having your |
| customers clamoring for your product or | | | | address be a P.O. Box number.6) Your Business |
| service. Please be sure you have a good | | | | Phone NumbersLike the business address, you |
| quality product and/or superior service. You | | | | can skip this step if you plan on using an |
| are not trying to make a quick buck; you want | | | | existing phone number. But you should |
| to have a business that lasts.I also have to | | | | consider adding a second phone number to your |
| assume that you already have some sort of | | | | home or office to be used just for your new |
| support network in place, trusted friends, | | | | business. You can even get what is called an |
| professional advisors like accountants and/or | | | | "overlay" and put a new phone number on top |
| lawyers, and a maybe a mentor with excellent | | | | of your existing phone. It will go to the |
| opinions. If you don't have them, you can | | | | same phone as you have now, and in most cases |
| pick them up along the way. But you'll need | | | | you can assign a different ring tone so you |
| them all at some point.You probably want to | | | | know it is for the business.A toll-free |
| know what qualifies me for writing about | | | | number is also an important item to have, but |
| this. Academically, I have an MBA in | | | | you don't have to have it right out of the |
| Entrepreneurship and Marketing. | | | | gate. But studies show that customers are |
| Professionally, I have been a consultant for | | | | more likely to contact you if you have a |
| many entrepreneurs, I worked at a home | | | | toll-free number. They are not that expensive |
| business franchise company for several years, | | | | to set up and the charges are based on usage, |
| and I have a few successful entrepreneurial | | | | so if you use it a lot you should be getting |
| ventures of my own. I even helped my own | | | | more than enough business to cover the |
| family launch a very successful online | | | | expense.Remember that you phone voice is |
| business selling premium pashmina and | | | | important. Talk with a smile - the customer |
| cashmere products. I'm not a super rich | | | | can hear that smile. Be sure you have a |
| entrepreneur, but I'm successful and happy. | | | | pleasant and professional sounding message |
| My key expertise is online ecommerce, but the | | | | for your voice mail as well. And call back |
| following ideas are relevant to starting any | | | | your customers who leave messages as fast as |
| type of business.How to Establish Your | | | | you can. Your competition probably isn't |
| BusinessThis first part is really what most | | | | taking care of them fast, so you should.7) |
| people don't know how to do. It's the | | | | Business Banking Account FormationHaving a |
| fundamental process of actually setting up | | | | separate business banking account is advised |
| the business. All the good ideas in the world | | | | since it will help you keep your financial |
| have to start at the beginning. It's not the | | | | records straight. It will save you a lot of |
| fun part, but it has to be done.It may seem | | | | time during tax season to keep your business |
| elementary to you, but why haven't you done | | | | and personal spending separate. I suggest |
| it yet?So, let's start from the start.1) | | | | using a larger bank, such as Bank of America |
| Giving Your Business a NameYour business' | | | | or Wells Fargo, which serves the business |
| name is important. It is your customers' | | | | community. They will offer a wider range of |
| first impression and your public identity. | | | | services and possibly be a good source of |
| You probably want to choose a name that is | | | | business loans to help fund your growth.You |
| professional, but also may hold some meaning | | | | may want to call several banks in your area |
| to you and your potential customers. My | | | | to compare their small business service |
| personal and professional opinion is to not | | | | options and the associated fees. Once you |
| get too elaborate with your name. Make it | | | | decide on the right bank for your needs, make |
| simple and direct so you don't have to waste | | | | sure you know what paperwork to take when you |
| a lot of time branding or explaining to your | | | | open the account. In most cases they will |
| customer just what it is you do or sell.For | | | | require at least your notarized D.B.A |
| example, for my family's business selling | | | | certificate.8) Logos, Business Cards, |
| pashmina products, we decided to go with The | | | | Letterhead and SuchSome people may tell you |
| Pashmina Store. There is no question what the | | | | to invest lots of money upfront to develop a |
| business is. Simple and direct...and the URL | | | | great logo and then put it on expensive |
| was available (which is very important).Most | | | | letterhead. These people have never started a |
| people have a desire to name their business | | | | business on a budget. While you do want to |
| after themselves, using something like their | | | | appear professional, you can do just fine |
| family name, their first name, or their | | | | with your own computer and printer while you |
| initials. This is a perfectly acceptable; as | | | | wait to grow big enough to afford such |
| long as you get the idea across about what it | | | | materials.Most likely your word processing |
| is you are selling. For example, if you are | | | | program or other such program already has a |
| selling raincoats and your name is Smith, you | | | | letterhead template. That is fine to use for |
| may call your business Smith's Raincoats or | | | | now. Choose a nice font for your new "logo" |
| even Raincoats by Smith.Take the time you | | | | and use some color for it, if you wish. Do |
| need to select on a business name that you're | | | | purchase some nice paper to put it on. Then |
| happy with, says what you do, and has a good | | | | simply print out as needed.On your |
| URL for a website. You should run your name | | | | letterhead, make sure you get all of your |
| choices by your friends and family to gauge | | | | important information across in a |
| their reaction and to get their thoughts.2) | | | | professional way. In general, you'll want to |
| Register Your URLI know, you just decided on | | | | include your business name, mailing address, |
| a name and have nothing close to a legal | | | | phone number, fax number and email |
| business yet. But I suggest snapping up the | | | | address.The same goes for business cards and |
| best available URL (or web addresses) as soon | | | | envelopes. You can buy nice envelopes and |
| as you can. In this day and age, your website | | | | business card stock and use your existing |
| and the URL will be a large part of you | | | | program templates to create professional |
| business identity. It will also be the | | | | materials as needed.Having a designed logo or |
| source of your email addresses, so getting a | | | | company motto on your letterhead is a |
| good URL matters. We were lucky enough to get | | | | personal choice. Make sure it looks good and |
| for the pashmina and cashmere business, I | | | | reflects the business. Also make sure it |
| hope you are as fortunate for your venture.It | | | | looks good when it is made very big or very |
| is best to investigate available URLs even as | | | | small since it will be used in various |
| you decide on a company name. Try to get the | | | | formats.The Next StepsOnce you finish Step 8, |
| URL of your exact business name, or as close | | | | you're in basic business shape. It is |
| as possible. I suggest getting a ".com" | | | | difficult to tell you what to do next since |
| rather than ".net" or other since that is | | | | there are so many types of business and |
| what most people know.You can research names | | | | different ways to go about it.In general, |
| and register at websites such as and There | | | | you'll need to start letting people know |
| is a small fee, but it is worth it if you are | | | | about your business and getting customers. |
| serious about your business. These two | | | | This may mean developing a website that sells |
| services even will help you inexpensively set | | | | products or promotes your services. It can be |
| up and host a website and email service.3) | | | | as simple as handing out business cards to |
| Your Business' Legal OrganizationNext, you | | | | everyone you meet. Or maybe it is "pounding |
| will have to determine what legal structure | | | | the pavement" and meeting people to tell them |
| is best for your new business. Early in a | | | | what you are doing.But there are a few things |
| business' life, a sole proprietorship is most | | | | to keep in mind that relate to any business. |
| common. However, it is beneficial to know the | | | | The Nike slogan has it right when they |
| different types of legal business structures | | | | proclaim "Just Do It." Nobody is coming to |
| before you decide for certain. You'll need to | | | | you, so you have to reach out to them. And it |
| know all about them as you grow, in any | | | | takes time and effort. Yes, you do have to |
| event.You'll most likely want to discuss the | | | | "work" and "sell" no matter what those |
| options with your accountant and/or attorney | | | | advertisements may promise for their |
| as well. To get you started, here are the | | | | wonderful business opportunity.Here's the |
| three most common forms of | | | | "secret" to success: You will have to work |
| business.1. Proprietorship. As mentioned | | | | harder than your competition, treat your |
| earlier, this is the most popular structure | | | | customers better than your competition, offer |
| when starting a new small business. It is | | | | a better product and or service than your |
| also the easiest to start. In most states and | | | | competition, just plain be better than the |
| cities, all it typically requires is a D.B.A. | | | | rest. Yes, that is the secret!My first job |
| ("doing business as") and a tax ID number, | | | | out of college was as an executive recruiter, |
| which would likely be your Social Security | | | | a headhunter. I was successful at this job. |
| number.A proprietorship provides you the | | | | In fact, I was one of the tops in the nation. |
| maximum amount of control over your | | | | It wasn't because I was naturally better than |
| business...but it also leaves you the most | | | | anyone else, it was because I worked harder |
| potential liability. In short, you are | | | | and I worked consistently. Have a plan for |
| personally accountable for your business and | | | | the day, the week, the month, the year...and |
| all of its debts and legal | | | | do it consistently. Get into a routine and |
| issues.2. Partnership. This form of business | | | | stick to it. You'll get sidetracked along the |
| is common if your business requires you to | | | | way, of course, but keeping your efforts |
| take on a business partner for expert | | | | consistent will pay off. You'll make you own |
| knowledge or financial needs. A partnership | | | | "luck."Since you are your own boss, you do |
| is a legal definition of your business | | | | have a little luxury to make a schedule that |
| relationship and defines which party is | | | | fits your lifestyle. If you want to start at |
| responsible for what aspect of the business | | | | 10:00 AM, or play golf for lunch, or work |
| venture.For example, you may be the | | | | late at night, that is fine. But stick to the |
| engineering type who can make the product. | | | | schedule and make it your routine. This will |
| Another person may be the talkative type who | | | | help you get over the initial feelings of |
| can sell sand in the desert. Yet another | | | | being scared and overwhelmed and start |
| person may be the main financial backer. | | | | getting you comfortable with your new |
| Whatever your circumstances, a partnership | | | | professional life and on your way to |
| allows you to define each person's part in | | | | success.Along the way, you'll start to |
| the business and put it down on paper in a | | | | discover what your strengths and weaknesses |
| legal manner.3. Corporation. This is the | | | | are. You don't have to be an expert at |
| most official and potentially complicated | | | | anything really; you just have to be average |
| legal form of business. This is also the most | | | | to above-average at a lot of things as an |
| expensive type of business entity, but it | | | | entrepreneur. If there are glaring weaknesses |
| does provide everyone involved the least | | | | in you business skills, you simply have to |
| amount of liability.It is very common to | | | | work at them. You can read a book, take a |
| start as a proprietorship or partnership and | | | | class, whatever...but you'll naturally get |
| then change to a corporation after the | | | | better each and every day just by doing your |
| business is established and growing.4) | | | | business.Finally, do not get so frustrated in |
| Business RegistrationAgain, most likely you | | | | the beginning that you quit before you even |
| will start as a sole proprietorship. The | | | | get started. Depending on what you start |
| process is very simple and inexpensive. But | | | | with and what (or who) you already know it is |
| the process can vary a bit between states and | | | | going to take some time. Even minimal success |
| even cities and counties.The goal here is to | | | | is probably going to take several months and |
| get your business name registered as a D.B.A, | | | | maybe a year or more. Make sure you are |
| or "doing business as". You will need this in | | | | mentally and financially ready for at least a |
| most areas to open a business checking | | | | year.If you're not ready now, don't worry. |
| account. The fees are typically minimal, but | | | | You now know the steps and what to expect to |
| vary on your location. Your County Registrar | | | | even get started. It is better to take you |
| is most likely to be the office you will need | | | | time and be well-prepared than to rush off |
| to contact to ask about what the process is | | | | and make a mistake that you will regret for |
| to get your D.B.A. The methods will vary by | | | | years to come.Launching and growing your |
| location and in some rare instances you may | | | | business are the essential main steps 2 and |
| not even have to register. Just be sure to | | | | 3. But those are whole other beasts that are |
| ask about all of the steps to make sure | | | | best discussed at another time. Until then, I |
| you're covered.After you have made some calls | | | | wish you the best of luck and hope that your |
| or used the Internet to find out the steps in | | | | new business is an incredible success.Blair |
| your area, you will most likely need to go | | | | Rhodes is an entrepreneur himself and has |
| fill out paperwork at the government office | | | | helped several people launch their own |
| that handles the registration. The good news | | | | successful business. After earning an MBA at |
| is that the paperwork is generally light and | | | | the University of Texas at Austin, Blair |
| the wait is not too long. They or you will be | | | | worked as a headhunter, in the movie |
| responsible for checking to make sure the DBA | | | | business, at several successful Internet |
| name is not already taken, and in many cases | | | | startups, at a franchise marketing company |
| you will be able to check on the Internet | | | | and as an importer. He currently focuses on |
| before you even go.After the paperwork and | | | | his own ventures, including The Pashmina |
| name check, you will have to pay a fee, which | | | | Store and is developing several other |
| is generally small. Once it is all done, be | | | | ecommerce businesses. |
| sure they give you a notarized copy of your | | | | |