BONUS STARTUP RESOURCE KIT + Sample Business Plans Starting Your Own Business 4TH EDITION Everything You Need to Start a Successful Business! 1811v4_07.pdf Guide No.1811 Entrepreneur Media Inc. Publishers of Entrepreneur magazine, Entrepreneur’s Startups magazine, Entrepreneur.com Letter From Rieva Lesonsky, Editorial Director Dear Entrepreneur: Congratulations! By selecting this guide, you’ve taken a very significant step on the road to starting and running your own business. We thank you for your purchase, and wish you every success in your new business venture. For 30 years, Entrepreneur magazine has been helping people just like you successfully start, run and grow their businesses. This startup guide repre- sents hundreds of hours of interviews and research performed by our expert business staff. Inside you’ll find practical, step-by-step advice that clearly outlines the basic components of developing a successful business. To get the most out of the guide, start by reviewing the table of contents, which is a good place to start to find chapters dedicated to any subject you’re looking for: business structures, equipment, advertising and marketing, and much more. We also included a number of resource listings in the appendices in the back of the book. These easy-to-use sections will give you names, addresses and phone numbers for a variety of associations, publications and service providers. For many of you, this package will be enough. But others may want or need more. Depending on your knowledge and experience, you may want to learn more about the essentials of business startup. Luckily we also have a solution for that. You can order Starting Your Own Business by calling our toll-free num- ber (800-421-2300) or going to www.smallbizbooks.com. Starting Your Own Business is a comprehensive guide to business startup, covering everything from evaluating your business idea to laying the groundwork to running day-to-day operations. That’s not all you’ll find at SmallBizBooks.com. You’ll discover everything you need to start, run and grow your business—from startup guides and reference books to e-books and business software. Remember to check back often—we’re always adding new products! We’re sure this guide offers a wealth of information that will be valuable for you today and in the years to come. Thanks again for your purchase, and good luck from all of us at Entrepreneur magazine. Sincerely, Rieva Lesonsky Editorial Director Entrepreneur Media Inc. From the Editors of Entrepreneur Magazine This publication has been developed with the intent to provide an accurate portrayal of the general informa- tion required to start a business on the subject matter Business covered. Recognizing that all business opportunities Resources contain inherent risks, we suggest that the prospective Division investor consult an attorney and/or accountant with regard to personal investment criteria. This report is sold with the understanding that the publisher is not rendering legal, accounting or other professional Managing advice. If legal or other expert assistance is required, it Editor is suggested that the services of a reputable attorney, Marla Markman accountant or professional consultant be sought. The editors of Entrepreneur magazine have thor- Senior Art oughly investigated and researched all sources, verify- Director ing as much data as possible to ensure the accuracy (Cover & Book Design) and completeness of the information in this book; how- Daryl Hoopes ever, we assume no responsibility for errors, inaccura- cies, omissions or any other inconsistencies herein. Production Quoted financial information and operation data are Designers strictly hypothetical. Your local situation may differ. Andy Markison Each report is accurate and current at the time it is Annie Roach published. However, certain information changes quickly, so make sure you do your research. Proofreader Emily Weisburg Any people or organizations mentioned herein are believed to be reputable, but neither Entrepreneur Illustrator Media Inc. nor any of its employees accept any respon- John McKinley sibility for the activities of those mentioned or endorse their products or services. Cover Photos Photos.com Indexer Ted McClellan STARTING YOUR OWN BUSINESS. ©2007 by Entrepreneur Media Inc. Printed and bound in the United States of America. All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means without permission in writing from the publisher, except by a reviewer, who may quote brief passages. This book is the Fourth edition of Starting Your Own Business and is a completely revised and expanded version. Published by Entrepreneur Media Inc., Business Resources Division, 2445 McCabe Way, Suite 400, Irvine, CA 92614. Other Startup Guide Titles Available From Entrepreneur Media Inc. Step•by•Step Startup Guides #1819 Online Business #1146 Automobile Detailing Business #1822 Online Learning Business #1186 Bar/Club #1818 Personal Concierge/Shopper #1278 Bed & Breakfast #1823 Personal Training Business #1136 Business Support Service #1827 Pet Businesses #1076 Car Wash #1400 Restaurant And 5 Other #1058 Child-Care Service Food Businesses #1816 Cleaning Service #1841 Retail Store #1817 Clothing Store #1820 Self-Publishing Business #1162 Coin-Operated Laundry #1071 Seminar Production Business #1830 College Planning Consultant #1825 6 Senior Care Services #1151 Consulting Service #1386 Specialty Travel & Tours #1304 Crafts Business Business #1840 eBay Business #1189 Staffing Service #1313 Event Planning Service #1375 Vending Business #1228 Executive Recruiting Service #1330 Wedding Consultant #1328 Freight Brokerage Business #1391 Wholesale Distribution #1306 Gift Basket Service Business #1282 Growing & Selling Herbs & Herbal Products Startup Essentials Series #1170 Hair Salon & Day Spa #1800 Creating A Successful #1826 Home Design Services Business Plan #1334 Home Inspection Service #1806 Financing Your Small #1092 Import/Export Business Business #1237 Information Consultant #1809 Marketing Your Small #1842 Lawn Care/Landscaping Business Services #1813 Selling Your Products #1345 Medical Claims Billing Service #1843 Starting Your Own Business Order by Fax: (845) 457-5029 Call Toll Free: (800) 421-2300 Visit Our Website: www.smallbizbooks.com Please Refer to Source Code: ZZMM Starting Your Own Business Table Of Contents Part 1: Think Chapter 1 ............................................................................................. 1.1 Introduction Chapter 2 ............................................................................................. 2.1 Taking The Plunge Get ready to be an entrepreneur Chapter 3 ............................................................................................. 3.1 Good Idea! How to get an idea for your business Chapter 4 ............................................................................................. 4.1 Good Timing Should you launch your business part time or full time? Chapter 5 ............................................................................................. 5.1 Build It Or Buy It? Starting a business vs. buying one Part 2: Plan Chapter 6 ............................................................................................. 6.1 Choose Your Target Defining your market Chapter 7 ............................................................................................. 7.1 If You Build It, Will They Come? Conducting market research i Table Of Contents Chapter 8 ............................................................................................. 8.1 The Name Game Naming your business Chapter 9 ............................................................................................. 9.1 Make It Legal Choosing a business structure Chapter 10 ......................................................................................... 10.1 Plan Of Attack Creating a winning business plan Chapter 11 ......................................................................................... 11.1 It’s Official Don’t forget licenses and permits Chapter 12 ......................................................................................... 12.1 Protect Yourself Understanding patents, trademarks and copyrights Chapter 13 ......................................................................................... 13.1 Call In The Pros Hiring a lawyer and an accountant Part 3: Fund Chapter 14 ......................................................................................... 14.1 All In The Family Financing starts with yourself and friends and relatives Chapter 15 ......................................................................................... 15.1 Nothing Ventured, Nothing Gained How to find and attract investors ii Starting Your Own Business Chapter 16 ......................................................................................... 16.1 Looking For Loans The ins and outs of debt financing Chapter 17 ......................................................................................... 17.1 Fed Funds How to get government loans Part 4: Prepare Chapter 18 ......................................................................................... 18.1 What’s Your Deal? Negotiating successfully Chapter 19 ......................................................................................... 19.1 Site Seeking Choosing a location for your business Chapter 20 ........................................................................................