Starting a Business in Michigan - Chapter 1 PDF

Welcome ======= #### Information included in this guide is both general and Michigan-specific.  Personal Assessment =================== Self-Assessment: Are You Ready to Start a Business? --------------------------------------------------- Steps to Starting a Small Business...

Welcome ======= #### Information included in this guide is both general and Michigan-specific.  Personal Assessment =================== Self-Assessment: Are You Ready to Start a Business? --------------------------------------------------- Steps to Starting a Small Business ================================== #### Start Your Business! Select a Business Idea ---------------------- Perform Market Research ============================================ Business-to-Consumer (B2C) Companies ------------------------------------ Business-to-Business (B2B) Companies ------------------------------------ Did You Know? ------------- #### Industry Research #### Researching Market Size and Customers #### Competition Research The Library ----------- The Internet ------------  Primary Sources --------------- #### Industry Experts and Successful Business Owners #### Surveys Visit Potential Competitors --------------------------- Paid or Hired Research ---------------------- Market Research Checklist =========================   Refine and Reevaluate Your Business Idea --- Is It Viable? ---------------------------------------------------------- #### (\$80 x 10 hours) + (\$60 x 4 hours) = \$800 + \$240 = \$1,040 Analyze Your Startup Costs -------------------------- STARTUP COST ANALYSIS SUMMARY  ---------------------------------------------------- Furniture ----------------------------------- -- Fixtures Production machinery or equipment Computers and software Telecommunications equipment Cash registers or POS systems Signage and installation Other Starting inventory ------------------------------------- -- Production materials and components Office supplies Other Marketing and design assets ---------------------------------- -- Advertising budget Promotional items and activities Other Professional fees (accountant, lawyer, etc.) ------------------------------------------------- -- Patent and trademark fees Insurance (health, life, fire, liability, etc.) Licenses and permits Trade association memberships Other From last paycheck to opening day ----------------------------------- -- 3-6 months after opening day Moving expenses Other Opening expenses ---------------------------- -- Wages, salaries, and taxes Other ------------- -- **TOT A L** ------------- -- FUNDING YOUR BUSINESS --------------------- Personal Financial Resources ---------------------------- - Liquid cash in checking and savings accounts - Financial potential from selling assets, like a vehicle - Funds you could receive as a gift (or investment) from friends and family - Home equity - Credit cards - Cash value of life insurance - Cash value of retirement investments - Income from a full-time or part-time job while you build your business  ###  LOANS #### Credit History #### Cash #### Collateral ### COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (CDFIS) ###  SBA LOANS ### CROWDFUNDING  Three Primary Types of Crowdfunding Exist: ------------------------------------------ #### Donation-Based Crowdfunding #### Rewards-Based Crowdfunding #### Equity-Based Crowdfunding Refine and Reevaluate Your Business Idea --- Is It Feasible? ------------------------------------------------------------ Write Your Business Plan ------------------------ ### GAIN FINANCING AND INVESTORS  ### CONSOLIDATE ALL YOUR INFORMATION ### TEST YOUR IDEA  ### MANAGE YOUR BUSINESS AFTER LAUNCH #### Michigan SBDC Consultants have templates that can help with writing your business plan. To request business consulting and see a schedule of Michigan SBDC workshops and seminars about business planning, visit:  Complete the Startup Checklist ============================== #### If Needed, Purchase an Existing Business #### Develop Your Business' Image and Branding #### Name and Legal Structure #### Licensing #### Food Business Licensing  #### State and Federal Tax Registration #### Employer Identification Number (EIN) and Taxpayer Identification Number #### Zoning and Local Requirements  #### Employee Considerations #### Intellectual Property (IP): Patents, Trademarks, Service Marks, Copyrights, etc. #### Business Insurance Secure Financing for Your Business ================================== Start Your Business ===================