1. Starting a Business

2. Going Into Business Why start a business Be your own boss
Financial independence
Use your own talents and be creative

3. Questions to Ask What are my skills best suited for?
Opportunity to put your skills to work
Where can I find information about businesses of this kind?
Libraries, existing businesses, trade associations, government resources, internet

4. What are the startup costs?
Many expenses to pay for (rent/mortgage, salaries, advertising, goods needed for sale, day-to-day operations, debts)
Debt Financing: Borrow money to run your business
Perhaps difficult to repay
Equity Financing: Use money from savings or investors
Might need to give up ownership of part of the business

5. Where can I find financing?
Banks, trust companies, credit unions
Credit history analysis
Business plan examined
Owner judged for skills
What level of risk can I expect?
Payment refusal
Partner does something unacceptable
Terminating employees may lead to legal action
Supplies not arriving on time
Damage to customer goods

6. What steps are involved in running the business?
Hire a staff with necessary skills to start/run
Determine the right number of employees
What resources would I need?
Cash, inventory, supplies, furniture, fixtures, computer hardware/software, equipment, tools, vehicles, buildings…
Forecasting: Determining what resources will be required
Determine revenue (money gained from the sale of a product) and compare with expenses and costs
Review every 3 months (every quarter)

7. Should my business be home-based?
Computers, scanners, video equipment, camcorders, access to Internet make running a business from home much easier
Fewer meetings, less office politics, less time on the phone, less running around, jeans and t-shirt?!

8. Class Work
Page 50
Numbers 2b, 3b,