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So you want to start your own business ...
ture business operators listened to Kathryn Richard talk about the key points of starting a business Thursday afternoon at Fort Scott Community College. Richard is the regional director of the Kansas Small Business Development Center (KSBDC) at Pittsburg State University, who facilitated the business startup workshop.
The attendees, one-by-one in different forms, said they were at the workshop to look at options should they pursue a business.
Richard told the group that the most important part of a business startup is to have a business plan.
"You need a plan if you'll have outside funding," she said.
But even if a person doesn't need some sort of financing, "You need to know where you are now, and what do you need to do in order to get there, steps to reach your goal," she said.
A business plan is a roadmap for the development of the company, and includes a written description of the business and financial data, according to handouts given to attendees.
The goals of a business plan are to be used as an operating guide, or as a loan request or as a prospectus for investors.
"What skills, abilities and experience are needed related to the business proposed?" she asked.
These need to be funneled into needed aspects of the proposed business. These aspects of a business are the technical, marketing and financial management parts. She compared it to a three-legged stool.
"No one person is good at all three. You may have to hire a key employee or outside help," Richard said.
There are several ways to organize a business legally : sole proprietorship, partnership, limited liability company or a sub-s company.
Richard suggested seeking an attorney's consultation to decide how to best protect assets.
Other considerations are legal liability, registering with the Kansas Secretary of State, procuring a tax identification number and taxation issues.
Questions to ask oneself, Richard said are: Where do you need to start the business? Where will you obtain it? How much will it cost? How much money is needed to invest in the business?
Lenders for businesses look at a well-thought-out plan, if there is evidence of management ability, if there is sufficient market to support the business and pay back the loan and also the creditworthiness of the potential business person.
"You've got to be a good credit risk. They look at your credit report. The lenders look at the hardest if there is sufficient market to support the business," Richard said.
There has got to be a market for the business idea.
Lenders look hard at the person's personal financial statement, as well.
"How much do you have personally? Are you willing to liquidate assets? Ask...what do I have I'm willing to risk as collateral?" she said.
Workshop attendees were given a set of forms to complete, along with resources to answer any questions that might arise.
Richard also recommended contacting her office at PSU once the process is started and any questions arise. She can be reached at the KSBDC: (620) 235-4921.