JANUARY 2011 Searching for Funds
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THE NORTHEAST MISSISSIPPI A MONTHLY PUBLICATION OF JOURNAL PUBLISHINGANDTHE COMMUNITY DEVELOPMENT FOUNDATION JANUARY 2011 Searching for funds Debunking the free money myth for startups, existing businesses. Page 3 Document: C001CDF010711.eps;Page: 1;Format:(254.00 x 295.27 mm);Plate: Composite;Date: Jan 05, 2011 11:35:11;JPC 72 DPI PAGE 2 BUSINESS JOURNAL JANUARY 2011 Document: C002CDF010711.eps;Page: 1;Format:(254.00 x 295.27 mm);Plate: Composite;Date: Jan 05, 2011 11:35:00;JPC 72 DPI JANUARY 2011 BUSINESS JOURNAL PAGE 3 Money remains critical issue for startups ■ A workshop series kicks off THE MOST FAQS FROM THE MISSISSIPPI this month, geared at teaching people Learn more ■ To sign up for free small business classes how to have a successful business. or free consultations, contact the Mississip- SMALL BUSINESS DEVELOPMENT CENTER: BY CARLIE KOLLATH pi Small Business Development Center at Business Journal (800) 725-7232. Do I need a sales tax number and how do operate your business. People have plenty of good ideas Frank Wiebe is a business counselor Q:I register for one? for new businesses. The trick is find- based at the Renasant Center for IDEAs in If you sell tangible personal property,or pro- How do I finance the startup of a small ing the money to finance those ideas, Tupelo. Contact him at (662) 680-6988. A:vide certain fabrication, rental or other partic- Q:business? says a local business counselor. See more events scheduled around the ular services, you must obtain a sales tax identifi- You should prepare a business plan with fi- “Financing is always an issue but state on the organization’s website: Mssb- cation number,also known as a seller’s certificate, A:nancial projections, including a balance from the Mississippi Department of Revenue. now more than ever,” said Frank dc.org sheet, income statement and cash flow statement. Wiebe of the Mississippi Small Busi- If wholesalers and retailers are reselling your Most small business startups are funded ness Development Center. “Not only product, you would not charge sales tax but through personal resources including savings, for startups, but for people (with ex- Business Boot Camp,” starts Jan. 27 would provide them your sales tax number for a equity or loans from family,friends or other in- isting businesses) trying to make it at the Renasant Center for IDEAs. resale certificate. vestors, home equity loans, cash value of life in- through tough times.” The boot camp series was started You would not charge sales tax to consumers surance or other personal resources. Wiebe helps people plan for suc- four years ago at the request of the who purchase your product outside of Mississippi. Banks will lend to some business startups. cessful businesses. He teaches class- Minority PUL Alliance, which is a After you register,your sales, regardless if If your request is denied, ask your bank if es in Tupelo about business plans, partnership of leaders in Pontotoc, sales tax is charged or not, must be reported they would consider the loan with a guarantee marketing and managing, among Union and Lee counties. The infor- regularly to the sales tax division. from the Small Business Administration. other things. mation sessions started about the In addition, there are number of local and re- The No. 1 question he gets asked: same time that Toyota announced it Do I need a business license? gional economic development agencies that have would build a manufacturing plant Where are the grants? Q: revolving loan funds that you may apply for. “There are no small business near Blue Springs. Mississippi does not license all businesses. The free series has nine workshops grants,” he said. A:However,your business may need state What legal form of business should I Most funds for startup businesses, – each lasting two hours – geared at and/or local licenses or permits. people who want to start a business Q:choose? according to the MSBDC, come from Your local SBDC counselor can help you de- ■ A sole proprietorship is owned by an in- personal resources including savings, and people who already have a small cide what licenses, if any,you may require. business. A:dividual (or a married couple) and it may equity or loans from family, friends Some professionals that require licenses are have one or more employees. Operating a sole or other investors, home equity The meetings and topics are: ■ Jan. 27: Keys to small business automobile dealers, commercial vehicle opera- proprietorship means that the owner is person- loans, cash value of life insurance or ally responsible for all liabilities of the business. other personal resources. success tors, health facility (including child care and nursing homes) operators, building contractors Also, the owner is taxed on a personal level for Sometimes banks will loan money ■ Feb. 3: First steps – starting your all profits generated by the business. to start a business, but Wiebe said business and restaurant owners and caterers. ■ A partnership occurs when two or more he’s found recently that banks are ■ Feb. 10: How to write a business less willing to take the risk on the plan How do I register my small business? people agree to share ownership of a business. venture. ■ Feb. 17: Marketing/secrets of ad- Q: This form of business allows the partners to Besides, Wiebe said it is important vertising If you decide to incorporate or become a share complementary skills and resources.The that startup businesses and existing ■ Feb. 24: Management – plan- A:limited partnership or a limited liability owners share, and pay personal taxes on, the businesses avoid borrowing money. ning, organizing, leading and con- company,you will need to register with the busi- profits of the business.Additionally,each part- They should focus on cutting costs trolling your business ness services group at the Mississippi Secretary ner is individually responsible for the liabilities of State. instead. But marketing is one cost ■ March 3: Next steps – growing of the business. they shouldn’t cut, he said. your business If you organize your business as a sole propri- ■ A limited liability company is a combina- Wiebe this month will kick off a ■ March 10: Attracting, selecting etorship or a general partnership, you do not need tion of the corporate form (providing limited lia- free workshop series that will cover and training people to register your business entity with the state. bility) and the partnership form (allowing you to potential money sources for small However,there may be certain state, city or businesses. The series, called “Small Turn to STARTUPS on Page 19 town permits or licenses that are required to Turn to FAQ on Page 19 Family Owned and Operated Since 1953. WITTMARION’S Mid South Nursery “QUALITY PLANTS &SERVICE SINCE 1953” 339 COLEY ROAD •842-4194 Document: C003CDF010711.eps;Page: 1;Format:(254.00 x 295.27 mm);Plate: Composite;Date: Jan 05, 2011 11:33:31;JPC 72 DPI PAGE 4 BUSINESS JOURNAL JANUARY 2011 Welcome to a new year, a new economic landscape belated “Happy New hundred 2010 – certainly doesn’t need world with such big economic world’s largest exporter, ahead Year” to you. We’re a dollar bar- high oil and gas prices for too clout, and it’s flexing its mus- of Germany once again. And it week into the new rels of oil long. cle while America goes to find also became the world’s Ayear and already we’re and $3- its Wheaties. largest automobile market, off to a rocking start. plus gas What’s the word? But it wasn’t like that a mere ahead of the U.S. do not In a decade China has dou- Three days into the 112th While we’re griping about decade ago. make for a bled the size of its economy. Congress and everyone’s gas prices, we’ll also try to fig- For nearly 42 years, Japan confident Some experts think it will dou- agreed to disagree. ure out what the new “word of was the up-and-comer. It was consumer a manufacturing juggernaut ble again within the next 10 And OPEC, seeing that the the year” will be. According to – or an that was the original “factory years. And many of those global economy is in such fine dictionary company Merriam- economic of the world.” Its technical and same experts think that within shape, thinks $100 oil is per- Webster, “austerity” was the fectly acceptable. Dennis recovery. financial prowess also were 20 years, China will displace No 1 word in 2010. Two years Of course when oil was at The flip hard to ignore as it rose to be- the U.S. at the top. SEID ago, M-W said “bailout” was $50, it was fine. And OPEC was side to the come the world’s second- China’s gross domestic happy when oil managed to argument the top word. largest economy behind the product in 2000 was estimated reach $60, $70 and $80, too. At of having high oil prices is that One word –make that name U.S. at about 10 percent of the least we’re not back at $150, economic growth spurs ener- – to consider is China and its My, how times have U.S.’ GDP. 1 impact on the global econo- where prices were briefly 2 ⁄2 gy growth, which means more changed. This year, China’s GDP is ex- years ago. Not that the Organi- oil is needed. Thus, we have my. Not that anyone should be In August, China displaced pected to reach nearly $5.4 zation of Petroleum Exporting higher oil and gas prices.