Business Basics > First Steps

First Steps to Starting a Business

Most business ideas become a reality with enough research, planning, and money. This list will start you thinking in the right direction. A potential investor, lender or financial officer will require a business plan and other supporting documents before funding your business idea. Start gathering the following information:

• A complete list of the equipment and fixtures that will be needed to open the doors of the business. This includes all furniture, office equipment, machinery, appliances, tools, shelving, display cases, storage etc. along with their estimated purchase price.
  
• A list of the supplies and/or retail inventory that will be needed to operate the business on its first day of opening. Include an estimate of wholesale costs.
  
• If buying, a copy of the building's performa including description, purchase price, and a copy of the written offer. Copies of tax assessed values of any land or buildings that will be purchased and an outside appraisal of any property included in the sale.
  
• If renting, an estimate of the square footage needed, the deposit and the monthly rent.
  
• If buying, obtain a signed declaration of the land and/or buildings' condition from the seller. In addition, arrange for an outside evaluation/inspection of the key features of the building, which includes:
  • The heating and cooling system,
    
  • The electrical system,
    
  • The plumbing,
    
  • The roof and drainage,
    
  • The foundation and structure soundness.
    
• If renting/leasing a facility obtain a copy of the agreement, with the tenant and the landlord's responsibilities for improvements, maintenance and repairs outlined.
  
• A list of any repairs, renovations or remodeling needed to the facility your business will be using. Include a description, specs, drawings, and cost breakdown.
  
• Written estimates from professional sources on any product development, engineering, or design work needed.
  
• Your current personal financial statement showing what you owe (liabilities) and what you own that has cash or resale value (assets).
  
• Your current credit report.
  
• Your most recent income tax returns.
  
• Your resume and resumes of any other people who will be key to the operation of the business.
  
• A business plan you have prepared for the business you are buying that contains the following sections:
  
  • A description of your business concept.
    
  • A description of how you plan to structure and manage the business.
    
  • A research report defining the markets for the business and their demographics. Describe how you plan to reach and sell them. Include associated costs in an attachment.
    
  • A summary report of initial start-up cost estimates for items and services needed to launch the business, compiled from the lists described above.
    
  • Projections for three years of cash-flow/operations budgeting estimates for both monthly expenses and monthly sales/income with the resulting estimated profit.

For assistance in gathering these documents, writing your business plan, and seeking funding, make an appointment with one of our counselors by contacting our office.