How to be the boss - Business Startup Guide for Women and Minoritiesebook


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Definitive guide to starting a business for women and minorities

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How to be the boss - Business Startup Guide for Women and Minoritiesebook

  1. 1. S e il p ca Hwt b o o e R pr e ot T EB S H OS AB s e s tr p u i s Sat n u G i fr u eo d Wo n me a dMi ri n n is ot eWo e a d m n rte m n n io iisP o u e e tE p s d rcrm n xoeO e i D os o Wo na dMi ri i G v rme t n C roaePo ue n p n g o r fr me n n i sn o en n a d op rt rc rme t n ote
  2. 2. This copy of How to Become the Boss is brought to you by:http://www.womenandminoritiesprocurementexposed.comv1.0 – 9/26/2011 © 2011by Head ExposedFeel free to post this special report on yourwebsite, blog, or email it to those who will benefitfrom it. Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 1
  3. 3. TABLE OF CONTENTSIs Owning a Business Right for You?...................................................................4Find Your Mentor………………………………………………………………………..6Register Your Business in Easy Steps……………………………………….………..7How Much Do You Need to Start?.......................................................................9Can You Provide for the FinancingRequirements?...........................................10Loans, Grants, and other Resources to Fund Your Small Business….…………11Take Advantage of Being a Small Business Concern……………………………12What Your Business Plan Must Contain……………………………………………...13Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 2
  4. 4. Is Owning a Business Right for You?Most people dream of owning a business. However, not all are aware if it is theright thing for them. For this reason, either they let their vision take a backseat orthey fail due to lack of knowledge and preparation. If you are one of thosewomen and minorities who cannot decide if you will go on with your goal or not,here are some of the factors that you may consider:1. PurposeWhy are you keen on starting a business? Is it for the sole reason that you areobliged to do something significant out of your life or is it because you want toprovide for your family and create jobs? Sometimes, your purpose in establishinga company, small or not, will dictate your level of passion and will determine thetype of outcome. Thus, if your aim is to become financially secure for your familyand to help people find jobs, you will give your 100 percent commitment.Because of this, you are likely to succeed.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 3
  5. 5. 2. ResourcesAre you financially capable of starting your business? Remember, your expenseswill start right from hiring a writer for your business plan and getting licenses andpermits. There are a lot more to follow—and the amount can be huge. You haveto be ready financially.3. Target MarketWho comprises your target market? Do they make up a bigger percentage of thepopulation in your location and nearby areas? This you have to make sure togauge the marketability of your products and/or services.4. TimeDo you have enough time to attend to your business? Take note that thisendeavor demands your full time from start to early years or until the enterprise isalready settled.5. LocationDoes the location in your mind generate heavy traffic? This you must highlyconsider because this is one of the factors that will signal your triumph. The peoplepassing by the vicinity will eventually become your prospect customers. You donot wish to sell in a remote place, right?6. CompetitionAgain, considering the location that you have in mind, you have to check if yourtype of business has many competitions already in the area. You have to realizethat you are in no position yet to compete because you are just starting.7. Uniqueness of the Products or ServicesAre you planning to sell a unique product or service? Well then good. Or, is it justan ordinary one? The key to business success is when you offer an exceptionalproduct or service or when you do something unique out of the ordinary. Thisbuilds curiosity or interest out of the buyers.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 4
  6. 6. After checking your preparedness to land in the world of business through the aspects mentioned above, are you ready to back out from your plans or are you aching to start? It is your freedom to choose. Find Your Mentor It is not sufficient that you have the drive, the business plan (which I am sure you did not do yourself), and the cash to begin your venture. You will also needthe assistance of people who are experts in this field. They will share with you theirstruggles, experiences, lessons learned and most especially the business strategiesthat they became the keys to their success. They will be your mentors.But because you are new, you have no idea where to find one. You need notworry because here is the list already:Minority Business Development Centers – These are handled by the MinorityBusiness Development Agency, which was a division of the US Department ofCommerce. With 40 locations, they are tasked to promote the growth andsuccess of minority-owned businesses in the United States.Women Business Centers – It gives the necessary counseling, training and othersto assist women in starting, growing or expanding their businesses.SCORE – This organization comprises almost 13,000 retired business managers,leaders and others. It offers mentoring and counseling to entrepreneurs, especiallyto women and monitories who own small businesses. Supported by the SmallBusiness Administration, it communicates with them in two ways: online counselingand in-person.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 5
  7. 7. Small Business Development Centers – It assists owners in managing their smallbusinesses.If the prior list belongs to the government, do not think that it is only the federalgovernment that offers counseling, training and mentoring to women andminorities who are interested in starting up a business. There are also privateassociations that provide assistance like angel investors and angel networks. Youmay also look around and ask people for reference. It is better to take the timeand effort to attend sessions and trainings than be sorry. Register Your Business in Easy StepsYou have to make sure that your business is operating legally; hence, you willneed to secure licenses and permits, as well as register it. Here are the basic steps:1. Identify legal structureIn doing this, you must take into consideration several aspects, like legal, tax andfinancial. The appropriate legal structure depends on a number of elements,which include the extent of your authority to your business, financing requirementsand how vulnerable your trade can be to charges or litigations.After knowing your legal structure, it is only then that you will be able to tell theother requirements for registration, which varies from one state to another.2. Submit your business nameYou have to think and register a name for your business because it is veryimportant when securing licenses and permits, as well as employer taxidentification. You also write it on government forms.If you are going for sole proprietorship, you can readily register your full name asthe legal business name. However, if you wish a name that reflects the type oftrade that you have, you have to register it as "Doing Business As" or DBA.If you are in a partnership, the business name can either be the name you allagreed on in the partnership agreement or the combination of all your lastnames. For corporations and LLCs (Limited Liability Corporations), the legalbusiness name should be the one that is listed in the state government.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 6
  8. 8. 3. Get a Federal Tax IDThe Employer Identification Number (EIN), which has nine digits, helps the InternalRevenue Service (IRS) to know who among the taxpayers must file the business taxreturns. Now, how do you apply for it? There are many ways: online, telephone,mail and fax.Apply at After completing the online form, your application canreadily be confirmed and the EIN can already be received. As a proof, you willneed to print a copy of the verification form. This may be the most preferredmode for IRS, but you can still opt to apply through their telephone service at(800) 829-4933 from Monday to Friday.When submitting your application for EIN through fax, you may also do so, butremember to attention it to the EIN Operation. After four business days, you will beable to receive your EIN through fax as well. The fax number is (859) 669-5760.If mailing is more convenient to you, send your accomplished Form SS-4 and yourEIN will be sent through mail. This method may take a long while, though, aboutfour weeks. Attention your mail to EIN Operation Cincinnati, Ohio 45999.4. Secure tax IDs and permits from your stateEven if you already have a Federal Tax ID, you also need to obtain permits andtax IDs from the State Revenue Agency in your area. One of them is the sales taxpermit if you will sell products and you are obliged to get sales taxes. For otherpermits and licenses, as well as taxes concerns, you may go to your StateRevenue Agency.5. Obtain permits and licensesIf obtaining EIN is easy, it may be another way for permits and licenses becauseyou may need to get them from the federal, state, as well as local government.Hence, the first thing that you do is to know which ones fit your small business.Below are some of the items that must be in the basic checklist:  Fundamental operation license in your city or in the local county  Health department permit, particularly if the business that you will start has something to do with foodHwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 7
  9. 9.  Fire department permit, this is to make sure that you will follow all regulations that will prevent future blaze  Zoning and land use permit  Occupational and professional licenses, auto repair, cosmetology, medical care and tax services  Sales tax license that will authorize you to collect sales tax from the products or services you offer  Special licenses or permits from your state basing on these items offered for business: gasoline, liquor, firearms, and others How Much Do You Need to Start?Okay, you have themoney. The one-million-dollarquestion, though: is itenough to start andkeep the businessfloating in its earlymonths or first year?Businesses have theirown cash needs.Some necessitatesmall capital; somecall for hugeinvestmentsbecause it entailsthe acquisition ofland and pieces of equipment. To determine your financial requirement,consider creating a spreadsheet and show a division for your expected costs:one-time and continuing expenditures. The first one includes property acquisitionor rental, licenses and permits, construction or remodel, signage and others. Thelatter comprises electricity and other utility bills, supplies, insurance and manymore.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 8
  10. 10. After doing this, ask yourself as you review each item that you have written: is itimportant or is it something that my business can live without? Put an "X" to theunnecessary piece or entry and consider them out of your list this is because yourbudget for startup should only compose those that are essential. Then you maystart placing an estimate cost for each. If you have no idea, make a survey andsurely you will come up with realistic figures of how much you need to effectivelybegin your dream of having a business. Can You Provide for the Financing Requirements? After determining your budget requirement, you have to evaluate your present economic condition. You must be like anarmy going to the war in full battle gear. If not, everything will end even beforeyou begin.Reality check, can your bank account provide for all the needs of your plannedbusiness? Of course, it is best if you can manage everything without seeking helpto others. You will begin your business venture without worrying about debts. Allyou have to think of is how to get your capital back and gain profit.Or, do you still need to borrow from friends? Most of the time, it is still better toscrounge for funds from friends than applying for loan. Because you well knoweach other, there is no need to prepare and sign up for papers. Just make sure,though, that you will give it back or else, your friendship will suffer.For the reason that you do not want to put your friendship at stake, are you willingthen to get a loan? Can you bear the complex loan process? When seeking loan,you have to ready yourself because you will need to prepare lots of papers tosupport your capacity to pay. These lenders will not give their money to someonewhose finances are questionable.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 9
  11. 11. Have you thought about looking for partners to increase your working capital?This is a good idea. You have someone with whom you can split work andfinancial load. However, you must realize that because of the partnership, youcannot decide on the business alone. You always have to consult with him or her.But there is one way to avoid this scenario, though. Get that person as anindustrial partner instead so he can only have a share of the profit but not of theownership.Loans, Grants, and other Resources to Fund Your Small BusinessYou have cash but it is not enough. Or, you have the ideas that you think willsurely turn gold but you have no money. Either of these scenarios, you needfunds. Consider applying for loans, grants, and others:1. Loans – This mayinclude securing smallbusiness loans fromprivate andgovernmentinstitutions. The onlything you need is abusiness plan to informthem about youraspirations and toprove to them thatthey can trust you withtheir money.2. Grants – With this, you will need a grant proposal to explain to different federalagencies your plans for startup and growth. In this paper, you will alsoorient them with the company that you will build, the products or services thatyou will sell, how much you need, and many more. However, not all businessescan have access to federal grant programs. Some enterprises that are fortunateto receive grants are those that deal with renewable energy, healthcare,childcare, elderly people, veterans, etc.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 10
  12. 12. In this program, there is no need for you to pay back the amount that is awardedto you. However, you will need to follow what has been agreed upon.3. Venture Capital and Angel Investors – This comes from people who have maderemarkable contributions in various industries. Because they are already expertsand successful in their fields, they aim to help other people, especially the onesthat belong to the disadvantaged population like the women and minorities,grow and become entrepreneurs; thus, creating jobs, promoting financial stabilityand supporting economic activities. All you need to do is to look for them overthe Internet. Take Advantage of Being a Small Business ConcernThe government has procurement programs available for small businessconcerns. If you are one of them, you must take advantage of your trade beingcategorized as one in the "disadvantaged" list. If you have no idea if yourenterprise qualifies as one, the Small Business Administration or SBA has thisfollowing information as definition:  Organized as for-profit, regardless if it is sole proprietorship, corporation or partnership  Located in the U.S.  Operates in the U.S. or at least contributes significantly to the U.S. economy by paying taxes or using U.S. products, labor or materials  Owned and run independently  Does not dominate its field of business on a nationwide basisOf course, before you will be able to participate in government procurement, youwill need to register first as a federal contractor. Here are ways:  Get a Dun & Bradstreet D-U-N-S Number at this link: This is free.  Register at Central Contractor Registration (CCR). This is a requirement of the Federal Acquisition Regulation (FAR).Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 11
  13. 13.  Register at the Online Representations and Certifications Application (ORCA).  Look for the North American Industry Classification System (NAICS) code or codes appropriate for your business.  Secure past performance assessment if you are interested in obtaining contract in the U.S. General Services Administration (GSA) Schedule. What Your Business Plan Must HaveYour business plan must carry all the information that it should have to bring yourventure to success and to capture the interest of lenders. Because you are new,you should take these vital elements of a business plan into consideration:Executive Summary  This may be the first one that can be seen in the business plan, but it is the last one written. It informs the reader or reviewer who you are, what is your business, your mission and vision, business strategies, competitive advantage, target market, capital you necessitate and how you hope to spend it, and many more. In short, it explains your whole work in one page.Company  In this section, you need to provide your company name, objectives, mission and vision, form of ownership, licenses and permits, legal structure, and products or services. Include also your space requirement, company location, and others.Market Study  State here your target market, as well as market segments. Discuss how you think you can penetrate the market effectively. Honestly indicate your expected revenue in three or five years. Say how you also hope to practice fair pricing and competition.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 12
  14. 14. Products or Services  Identify the products or services that you plan to offer. Describe how they will lead your business to success and how they can give you market advantage. Discuss also where these products or services will come from. Marketing Strategy and Execution  Give details on how your products or services can infiltrate the market. Are you thinking of relying on paper advertising? How and where will you distribute brochures? Will you have a website? Are you also thinking of promoting through social networking sites? These and others are the questions that you have to answer.Competitors  Identify at least five of your competitions. Tell the advantages of your business to them. Know their strengths and weakness and how you will address them to benefit your goals.Operations  Explain how you will collect payments and how many employees do you need, as well as their duties and responsibilities. Itemize the pieces of equipment and technology that you need to support your workflow. Indicate also your time of operation.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 13
  15. 15. Organizational Background  This part is also important because this will validate the capacity of your people to help your business become successful. State their skills and experiences. Include their résumés. If you have financial advisors and business mentors, mention them as well.Financial Summary  Provide a computation of your start-up cost. Make a spreadsheet of your profit and loss statement for the first year of operation, as well as a cash flow projection.Attachments  Do not forget to attach documentations that will support your information. This should include market research or market statistics, legal documents, personal financial statements and others.Hwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 14
  16. 16. PHOTO CREDITSPage 1 – Confusing businessman – Image: 89studio / FreeDigitalPhotos.netPage 5 – Which way? – Image: jscreationzs / FreeDigitalPhotos.netPage 8 – Money and calculator – Image: nuttakit / FreeDigitalPhotos.netPage 9 – Financial Health - Image: renjith krishnan / FreeDigitalPhotos.netPage 10 – Person signing on loan application – Image: vichie81 /FreeDigitalPhotos.netPage 13 – Hand and strategy buttons - Image: tungphoto / FreeDigitalPhotos.netHwt b o o et eb s h os AB s e s tr pG i fr me a dMi ri u i s Sat u e o Wo n n n i s n u d ote 15