Starting a Business

Starting your own business is a dream for many Americans. The rewards of being your own boss and the opportunity to grow a company from the ground-up present exciting possibilities. But getting your business up and running takes hard work and sound financial planning to avoid pitfalls that can lead to problems for your new venture. Among the important aspects of managing your business finances is protecting the assets of your growing company. Life insurance can play a key role in helping you make sure your business has the capital to meet its obligations if something should happen to you. To learn more about planning your business finances, and how it can impact your family, speak with your financial advisor. More information to help you evaluate the costs of starting a business is found below.

How much does it cost to start a new business?
What things should I consider in starting a new business?

How much does it cost to start a new business?
According to the Small Business Administration when starting a new business, moving to a new location, opening a branch or expanding your business, you need to account for start-up and one-time expenses. Among the costs to consider are rent and utilities, furniture, fixtures, beginning inventory, professional fees, marketing expenses and more. For a detailed checklist to help you calculate your business start-up costs, click here to visit the SBA's web site.

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What things should I consider in starting a new business?
The Small Business Administration has prepared a checklist of items to consider when starting up your new business. View the list below or click here to visit the SBA's web site.

1. Know what type of business you would like to start and learn all you can about it.
2. Appraise your business strengths and weaknesses. Be strict and objective.
3. Conduct thorough research of potential customers, your trade or industry, your competition, your licensing and tax requirements, location, and name.
4. Determine type of business organization (ie. Proprietorship, Partnership, or Corporation).
5. Evaluate possible site locations. Check physical condition, suitability, traffic flow, parking, utility requirements, and cost.
6. Prepare a comprehensive business plan - include your action timetable.
7. Decide on your business hours.
8. Secure necessary capital (ie. Bank loan, budget to save, borrow on insurance, etc.).
9. Obtain needed facilities, equipment, furnishings, signage, supplies, stock.
10. Recruit personnel. Establish job descriptions and training program.
11. Print business cards, stationery, invoice or statement forms.
12. Register name of business (your assumed name) and/or file articles of incorporation with the Secretary of State. Publish notice in newspaper.
13. Secure any necessary permits, licenses, or zoning variations. Check with both local and state licensing agencies.
14. Register your business with the state and obtain a Sales & Use Tax Permit (if applicable).
15. Register for Federal tax number (Form SS-4) and obtain employee tax and withholding information from the IRS.
16. Establish bank account (separate from personal account). Shop for the bank and services that best suit your needs.
17. If you intend to hire employees in your business, phone your Department of Economic Security or Workforce Commission.
18. Phone the IRS for a free "Small Business Tax Kit" at 1-800-829-3676. For information about free Tax Education Workshops, call 1-800-829-1040 or check out the IRS website for this information.
19. Issue news releases. Publicize your new venture.