Do I need a business plan?
Yes. It is a necessary process for the following reasons:
- Building a business plan allows you to work through the myriad of details that determine the viability of your business concept. It is an essential part of the commitment that is necessary for success.
- Lenders and investors will require a well-formulated business plan before they will consider financing a business.
- Many insurance companies will require a well-formulated business plan that includes a section on “Risk Management” before they will underwrite a General Liability policy.
Do I need education and/or practical experience in the field in which I plan to do business?
Yes. Those who are educated and/or experienced in their chosen enterprise possess greater credibility and are far more likely to succeed. One exception would be a franchise where comprehensive training is included in the purchase agreement.
What governmental and/or regulatory agencies do I need to notify when opening a business?
This varies depending on the type of business and business structure. See the details under “Governmental & Regulatory Agencies” on this site.
Is there “free money” available for a start-up business?
No. Any money that is available fits into one of the following categories:
- Most financing is “debt” financing and requires payback with interest.
- Grants generally require “matching.” If you pass the qualification process then you will have to acquire and/or spend more, or an equal amount to what is received.
- Generally, private investors or “Angel Investors” make investments in an enterprise that already has established profitability or shows potential for large profits. Most commonly, the expectation is a substantial and speedy “Return on Investment (ROI).”
*Established Business FAQ coming soon!