This document provides guidance on starting a first business, including choosing the right business idea and corporate structure, creating strategic plans and goals, and leveraging free resources for startups. It discusses factors to consider like liability, taxation, and flexibility when deciding on a sole proprietorship, partnership, S-corporation, or LLC. The document also emphasizes the importance of strategic planning, goal setting, and utilizing free counseling and tools from organizations like SCORE and Small Business Development Centers to help ensure startup success.

1. How to Start Your 1st Business
by Janice Riley

2. What We’ll Cover
• Knowing the Right Business Idea for You
• Selecting the Right Corporate Structure
• Strategic Plans and Why You Need One
• Goal Setting and Why It's Important
• Discover FREE sources for Startups

3. Knowing the Right Business
Idea for You
• What Color Is My Parachute?
• What is your DISC score/Meyers-Brigg
assessment/etc.?
• What is your passion?

4. Selecting the Right Corporate
Structure
• Seek professional advice to consider pros and cons of each entity
• Consult SBA/SCORE (free) or attorneys & accountants ($$) for your
own business needs
• 3 Key Factors
• Liability
• Taxation
• Record-keeping

5. The Different Entities
• Sole Proprietorship
• One owner
• Easy to form and report taxes (quarterly returns)
• Complete managerial control
• Personally liable for all financial obligations of biz
• Dependent on self for funding/financing

6. Partnership
• Two or more owners
• Tax burden passes thru to partners for individual taxes
• Each partner is liable for obligations of business
• Must file Partnership Tax Return Form 1065
• Each partner can act on behalf of partnership.
• More legal and accounting services needed

7. Entity Type: Corporations
• Avoidance of personal liability
• Cost & time to form corporation
• Legal & Accounting Services
• Extensive record-keeping required
• Ability to raise funds thru shares/stock
• S-Corp allows income or losses to pass thru to individual tax returns
• Possible double taxation: once as Inc, once as Individual

8. Limited Liability Company
• Hybrid of Partnership & Corporation
• Profits & Losses pass through to individuals
• Shielded from personal liability
• Tax treatment varies by state
• Flexible management
• Flexible distribution of profits & losses
• No stock for fundraising
• Fewer incentives for employees

9. Deciding Which Is Right?
• Legal liability – Can you afford the risk of the company’s liability?
• Tax implication -- What are the opportunities to minimize taxation?
• Cost of formation & administration – Record-keeping and paperwork
• Flexibility – Consider the unique needs of the business and owners
• Future needs – Think 5-10 years out. Exit strategy?

10. Strategic Plans & Why You Need
One
• Executive Summary, Elevator Pitch, Mission Statement
• SWOT Analysis, Goals, Key Performance Indicators (KPIs)
• Target Customers, Industry Analysis, Competitive Analysis &
Advantage
• Marketing Plan, Team, Operations Plan
• Financial Projections

11. Why a Strategic Plan?
• Banks, Investors, Management Team members will want to review it
• Key questions that you need to answer to ensure success
• Identify your market, your product, your go-to-market strategy
• What do you need to do in order to make money?
• How many sales per week/month?
• At what price point?
• What production level is necessary?

12. Goal Setting & Why It’s
Important
• SMART goals (Specific, Measurable, Achievable, Realistic, Time-targeted)
• Work towards your objectives
• Provides focus for business
• Specific & ambitious goals lead to higher level of performance
• Self-satisfaction of achievement
• Energizing for those battle-worn days

13. Free Resources for Startups
• SCORE – nonprofit of online and in-person counseling for businesses
• Nearly 400 chapters
• Small Business Smart Start Tools
• Working & retired executive who volunteer
• Small Business Development Centers
• 1100 branch offices
• Workshops
• Resource libraries

14. More Startup Resources
• SBA
• Free at-your-pace courses
• Veteran resources
• Women’s Business Center
• US Chamber Small Business Center
• Startup Toolkit
• Library
• Government Contracts Guidance
• SuccessfulStartup101.com

15. That’s all, folks!
Questions?
or
Comments?