Definitive guide to starting a business for women and minorities

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2. This copy of How to Become the Boss is brought to you by:
http://www.womenandminoritiesprocurementexposed.com
v1.0 – 9/26/2011 © 2011by Head Exposed
Feel free to post this special report on your
website, blog, or email it to those who will benefit
from it. 
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3. TABLE OF CONTENTS
Is Owning a Business Right for You?...................................................................4
Find Your Mentor………………………………………………………………………..6
Register Your Business in Easy Steps……………………………………….………..7
How Much Do You Need to Start?.......................................................................9
Can You Provide for the FinancingRequirements?...........................................10
Loans, Grants, and other Resources to Fund Your Small Business….…………11
Take Advantage of Being a Small Business Concern……………………………12
What Your Business Plan Must Contain……………………………………………...13
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4. Is Owning a Business Right for You?
Most people dream of owning a business. However, not all are aware if it is the
right thing for them. For this reason, either they let their vision take a backseat or
they fail due to lack of knowledge and preparation. If you are one of those
women 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. Purpose
Why are you keen on starting a business? Is it for the sole reason that you are
obliged to do something significant out of your life or is it because you want to
provide for your family and create jobs? Sometimes, your purpose in establishing
a company, small or not, will dictate your level of passion and will determine the
type of outcome. Thus, if your aim is to become financially secure for your family
and to help people find jobs, you will give your 100 percent commitment.
Because of this, you are likely to succeed.
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5. 2. Resources
Are you financially capable of starting your business? Remember, your expenses
will start right from hiring a writer for your business plan and getting licenses and
permits. There are a lot more to follow—and the amount can be huge. You have
to be ready financially.
3. Target Market
Who comprises your target market? Do they make up a bigger percentage of the
population in your location and nearby areas? This you have to make sure to
gauge the marketability of your products and/or services.
4. Time
Do you have enough time to attend to your business? Take note that this
endeavor demands your full time from start to early years or until the enterprise is
already settled.
5. Location
Does the location in your mind generate heavy traffic? This you must highly
consider because this is one of the factors that will signal your triumph. The people
passing by the vicinity will eventually become your prospect customers. You do
not wish to sell in a remote place, right?
6. Competition
Again, considering the location that you have in mind, you have to check if your
type of business has many competitions already in the area. You have to realize
that you are in no position yet to compete because you are just starting.
7. Uniqueness of the Products or Services
Are you planning to sell a unique product or service? Well then good. Or, is it just
an ordinary one? The key to business success is when you offer an exceptional
product or service or when you do something unique out of the ordinary. This
builds curiosity or interest out of the buyers.
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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 need
the assistance of people who are experts in this field. They will share with you their
struggles, experiences, lessons learned and most especially the business strategies
that 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 not
worry because here is the list already:
Minority Business Development Centers – These are handled by the Minority
Business Development Agency, which was a division of the US Department of
Commerce. With 40 locations, they are tasked to promote the growth and
success of minority-owned businesses in the United States.
Women Business Centers – It gives the necessary counseling, training and others
to 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, especially
to women and monitories who own small businesses. Supported by the Small
Business Administration, it communicates with them in two ways: online counseling
and in-person.
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7. Small Business Development Centers – It assists owners in managing their small
businesses.
If the prior list belongs to the government, do not think that it is only the federal
government that offers counseling, training and mentoring to women and
minorities who are interested in starting up a business. There are also private
associations that provide assistance like angel investors and angel networks. You
may also look around and ask people for reference. It is better to take the time
and effort to attend sessions and trainings than be sorry.
Register Your Business in Easy Steps
You have to make sure that your business is operating legally; hence, you will
need to secure licenses and permits, as well as register it. Here are the basic steps:
1. Identify legal structure
In doing this, you must take into consideration several aspects, like legal, tax and
financial. The appropriate legal structure depends on a number of elements,
which include the extent of your authority to your business, financing requirements
and 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 the
other requirements for registration, which varies from one state to another.
2. Submit your business name
You have to think and register a name for your business because it is very
important when securing licenses and permits, as well as employer tax
identification. You also write it on government forms.
If you are going for sole proprietorship, you can readily register your full name as
the legal business name. However, if you wish a name that reflects the type of
trade 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 all
agreed on in the partnership agreement or the combination of all your last
names. For corporations and LLCs (Limited Liability Corporations), the legal
business name should be the one that is listed in the state government.
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8. 3. Get a Federal Tax ID
The Employer Identification Number (EIN), which has nine digits, helps the Internal
Revenue Service (IRS) to know who among the taxpayers must file the business tax
returns. Now, how do you apply for it? There are many ways: online, telephone,
mail and fax.
Apply at www.irs.gov. After completing the online form, your application can
readily be confirmed and the EIN can already be received. As a proof, you will
need to print a copy of the verification form. This may be the most preferred
mode 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, but
remember to attention it to the EIN Operation. After four business days, you will be
able 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 your
EIN will be sent through mail. This method may take a long while, though, about
four weeks. Attention your mail to EIN Operation Cincinnati, Ohio 45999.
4. Secure tax IDs and permits from your state
Even if you already have a Federal Tax ID, you also need to obtain permits and
tax IDs from the State Revenue Agency in your area. One of them is the sales tax
permit if you will sell products and you are obliged to get sales taxes. For other
permits and licenses, as well as taxes concerns, you may go to your State
Revenue Agency.
5. Obtain permits and licenses
If obtaining EIN is easy, it may be another way for permits and licenses because
you 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 food
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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 the
money. The one-
million-dollar
question, though: is it
enough to start and
keep the business
floating in its early
months or first year?
Businesses have their
own cash needs.
Some necessitate
small capital; some
call for huge
investments
because it entails
the acquisition of
land 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 acquisition
or rental, licenses and permits, construction or remodel, signage and others. The
latter comprises electricity and other utility bills, supplies, insurance and many
more.
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10. After doing this, ask yourself as you review each item that you have written: is it
important or is it something that my business can live without? Put an "X" to the
unnecessary piece or entry and consider them out of your list this is because your
budget for startup should only compose those that are essential. Then you may
start placing an estimate cost for each. If you have no idea, make a survey and
surely you will come up with realistic figures of how much you need to effectively
begin 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 an
army going to the war in full battle gear. If not, everything will end even before
you begin.
Reality check, can your bank account provide for all the needs of your planned
business? Of course, it is best if you can manage everything without seeking help
to others. You will begin your business venture without worrying about debts. All
you 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 to
scrounge for funds from friends than applying for loan. Because you well know
each 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 willing
then 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 to
support your capacity to pay. These lenders will not give their money to someone
whose finances are questionable.
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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 and
financial load. However, you must realize that because of the partnership, you
cannot 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 an
industrial partner instead so he can only have a share of the profit but not of the
ownership.
Loans, Grants, and other Resources to Fund Your Small Business
You have cash but it is not enough. Or, you have the ideas that you think will
surely turn gold but you have no money. Either of these scenarios, you need
funds. Consider applying for loans, grants, and others:
1. Loans – This may
include securing small
business loans from
private and
government
institutions. The only
thing you need is a
business plan to inform
them about your
aspirations and to
prove to them that
they can trust you with
their money.
2. Grants – With this, you will need a grant proposal to explain to different federal
agencies your plans for startup and growth. In this paper, you will also
orient them with the company that you will build, the products or services that
you will sell, how much you need, and many more. However, not all businesses
can have access to federal grant programs. Some enterprises that are fortunate
to receive grants are those that deal with renewable energy, healthcare,
childcare, elderly people, veterans, etc.
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12. In this program, there is no need for you to pay back the amount that is awarded
to you. However, you will need to follow what has been agreed upon.
3. Venture Capital and Angel Investors – This comes from people who have made
remarkable contributions in various industries. Because they are already experts
and successful in their fields, they aim to help other people, especially the ones
that belong to the disadvantaged population like the women and minorities,
grow and become entrepreneurs; thus, creating jobs, promoting financial stability
and supporting economic activities. All you need to do is to look for them over
the Internet.
Take Advantage of Being a Small Business Concern
The government has procurement programs available for small business
concerns. If you are one of them, you must take advantage of your trade being
categorized as one in the "disadvantaged" list. If you have no idea if your
enterprise qualifies as one, the Small Business Administration or SBA has this
following 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 basis
Of course, before you will be able to participate in government procurement, you
will need to register first as a federal contractor. Here are ways:
 Get a Dun & Bradstreet D-U-N-S Number at this link:
http://fedgov.dnb.com/webform/index.jsp. This is free.
 Register at Central Contractor Registration (CCR). This is a requirement of
the Federal Acquisition Regulation (FAR).
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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 Have
Your business plan must carry all the information that it should have to bring your
venture 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.
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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.
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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.
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16. PHOTO CREDITS
Page 1 – Confusing businessman – Image: 89studio / FreeDigitalPhotos.net
Page 5 – Which way? – Image: jscreationzs / FreeDigitalPhotos.net
Page 8 – Money and calculator – Image: nuttakit / FreeDigitalPhotos.net
Page 9 – Financial Health - Image: renjith krishnan / FreeDigitalPhotos.net
Page 10 – Person signing on loan application – Image: vichie81 /
FreeDigitalPhotos.net
Page 13 – Hand and strategy buttons - Image: tungphoto / FreeDigitalPhotos.net
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