Starting a Small Business:
The following is some very general information about starting a small business. The Chamber strongly urges anyone starting a business to consult with an attorney and an accountant. In today’s complex world, there are many legal and tax-related issues to be dealt with. It may also be necessary to consult with a marketing/advertising professional,
as poor marketing and advertising can cause more harm than good to a business.
(Note: Scroll to bottom for classes and websites)
Accounting/Legal
Most people want to be protected from individual liability, and the many tax issues have to be considered. It is best to consult your attorney or CPA when choosing which type of entity you will have. The choices are as follows:
Your attorney should be able to assist you with the protection of your business name and logo, with the US Patent and Trade Office. Your attorney can research zoning laws, and he or she can inform you of employment laws, including questions you may or may not ask when interviewing potential employees.
An accountant can assist the new business owner with sales tax, payroll tax, income tax, unemployment insurance, occupational licenses, and more.
There are several accountants and attorneys listed in the Chamber of Commerce Membership Directory.
Depending on the type of business you own, you may need to acquire Workers’ Compensation, General Liability, Equipment/Property or Premises coverage. Check the Chamber’s Membership Directory for local insurance agents.
In Paris, contact Everett Garrison at the City Building, 525 High Street, 859-987-2110. For Bourbon County, contact Mary Allen Hedges at the Treasurer’s Office, Bourbon County Courthouse, 859-987-2139.
In preparation to obtain funds for your business, you will need to write a Business Plan. This will include your company’s description, its mission statement, a market analysis, competition, key personnel, and an executive summary. There is a good website offering help with writing business plans at www.bplan.com.
You will need three years’ financial statements and tax returns on all owners with 20% or more interest in the company. You will need a personal resume, and personal and business references. If the business is brand new, the bank will require two years’ projections with the first year broken down month-to-month. If the purchase of real estate is involved, the bank will require a copy of the contract to purchase. If the loan is for a franchise, a copy of the franchise agreement would be required.
The first step of marketing should be done as soon as the business idea is conceived. Several questions should be asked:
What is the purpose of your business? Does it provide an important product or service? Name the benefits of your product or service.
Who are your target customers? Have you studied the demographics of the area? Consider the age, sex, income, occupation, education, and hobbies of your customers.
Who is your competition? Why is your product or service better? Can you convince the public of this?
Where is your company going in the future? What are your goals? What opportunities exist?
What potential threats can hinder your success – Competition, economy, legislation, work force?
An advertising professional can help you answer these questions:
Who are we trying to reach with our advertising? Who are our target customers?
What do we want to convince them of? What do we need them to believe about our service or product?
Why should they believe us? We must support the claims we make in our advertising.
Where is the most cost-effective place to put our advertising? In which media – newspaper, radio, television, mailings, internet?
When do we schedule our ads? For what reason?
How much can we spend on advertising? (Generally, you can’t afford NOT to advertise!)
Visibility and accessibility are extremely important to a retail or service-related business. Consult with a realtor or an attorney regarding zoning laws, to make sure you are in compliance.
The Lexington Area Small Business Development Center, which is co-sponsored by the University of Kentucky, several government agencies, and other businesses, has training sessions throughout the year. Some of the topics offered are How to Buy a Franchise, Tax Reduction Strategies, Basic Recordkeeping and Accounting, Developing a Business Plan, and Pre-Business Orientation. The classes are held at the Lexington Central Library on Main Street in Lexington. The fees for most classes are only $20, and some classes are free. For more information, call 859-257-7667, or go to the Kentucky Small Business Development Centers’ website at www.ksbdc.org for the training schedules.
Call Mona Proctor at the Library, 987-4419, extension 107 for information on these classes.
Computer Classes at the Adult Learning Center (in the Bo. Co. Preschool Bldg)
Call Susie Copher or Donna Grupposo at 987-2183 for these classes.
Call 869-257-7666 for a schedule, or pick one up at the Paris Chamber of Commerce.. Classes are held at the Lexington Central Public Library, 140 East Main Street, 4th Floor.
S.C.O.R.E. is there to help. The Service Corps Of Retired Executives has a chapter at 389 Waller Avenue in Lexington. Call 859-231-9902 or e-mail scorlex@pdqweb.com for more information. Check out the website for the nationally-based S.C.O.R.E in Washington, D.C. at www.score.org.
Other good websites:
www.bigstep.com - free service to create and manage e-business web site
www.businessplans.org - helps you plan, document, and evaluate your business strategy
www.entreworld.org - resources for starting, growing, and supporting your business
www.equalfooting.com - online marketplace for purchasing and financing - a network of lenders and industrial and equipment distributors
www.garage.com - find seed money for your small business
www.sba.gov - The U.S. Small Business Administration - guaranteed loan programs, government resources and legislation relating to small businesses
www.toolkit.cch.com - small business tax information, a guidebook, and more
www.workingsolo.com - for the self-employed, home-based, freelance, or other independent professional
www.workingwomanmag.com - advice and resources for women in business
www.workz.com - tips and tools for building and growing your website, attracting customers, making money and managing operations