1. www.sbdc.psu.edu 1 The First Step of Starting a Business 119 Technology Center, University Park, PA 16802 814-863-4293 sbdc@psu.edusbdc@psu.edu

2. www.sbdc.psu.edu 2 About the SBDC Eighteen Centers in Pennsylvania More than 1,000 Centers Nationwide The SBDC network provides free confidential one-on-one consulting to current or potential small business owners and free and low-cost educational programs. www.asbdc-us.org www.pasbdc.org www.sbdc.psu.edu www.facebook.com/PennStateSBDC

3. www.sbdc.psu.edu 3 Personal Qualifications Ask yourself: Why do I want to own a business? Am I willing to work hard? Can I make decisions? Can I handle risk? Do I have the skills that I need?

4. www.sbdc.psu.edu 4 One-third fail in the first year, 50% go under within five years Poor Management: getting into a field with little or no experience Poor Marketing: underestimating the time needed to build a market, ignoring competition Poor Finances: not having enough working capital, not allowing for unexpected expenses Why do businesses fail?

5. www.sbdc.psu.edu 5 Legal Issues New Business Registrations www.irs.gov www.pabizonline.com www.dos.state.pa.us www.revenue.state.pa.us www.dli.state.pa.us www.eatsafepa.com www.attorneygeneral.gov …and possibly others

6. www.sbdc.psu.edu 6 Pennsylvania Sales and Use Tax “The Sales and Use Tax is imposed on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania. The tax is also imposed on certain services relating to such property and on the charge for specific business services.” A Sales and Use Tax License can be obtained by completing form PA100, the Pennsylvania Enterprise Registration at www.pabizonline.com Publication REV-717AS “Retailers’ Information” details which products and services are subject to Sales and Use Tax

7. www.sbdc.psu.edu 7 Other Pennsylvania Registrations Professional Licenses: Bureau of Professional and Occupational Affairs www.dos.state.pa.us www.dos.state.pa.us Retail Food Facilities: Bureau of Food Safety and Laboratory Services www.eatsafepa.com Home Improvement Contractors: PA Attorney General www.attorneygeneral.gov

8. www.sbdc.psu.edu 8 Local Registrations and Issues City, Township, Borough, County Business Registrations Tax Regulations: Local Sales or Occupancy Tax Zoning Requirements: Home-Based Businesses and Signage Codes Enforcement Officer: Uniform Construction Codes and Occupancy Permits Ask for written verification of compliance.

9. www.sbdc.psu.edu 9 Business Support Banking Insurance Attorney Tax Professional

10. www.sbdc.psu.edu 10 Business Structure Sole Proprietorship Partnership Limited Liability Company Corporation

11. www.sbdc.psu.edu 11 Business Planning Five Reasons for Writing a Business Plan It forces you to look at your entire business It becomes a tool to help you manage your business It demonstrates your goals and objectives to others It provides a basis for your financing proposal It creates a ‘yardstick’ to measure your progress Write it yourself, and use it! Visit www.sba.gov for tools and templates to help write a plan.www.sba.gov

12. www.sbdc.psu.edu 12 Business Planning Organization and Management Products and Services Industry Trends Human Resources Disaster Planning Competitive Analysis Target Market Marketing and Promotions

13. www.sbdc.psu.edu 13 Financing a Business Sources of Financing Personal funds Loans from friends and family Crowdfunding Commercial loans Small Business Administration guaranteed loans State and local loan programs Grants

14. www.sbdc.psu.edu 14 Financial Plan Start-Up Costs Overestimate Recurring Monthly Expenses Overestimate Owner Compensation Estimated Revenues Seasonal Variations Credit Terms to Customers

15. www.sbdc.psu.edu 15 Cashflow Statement “A summary of the inflows and outflows of cash in over a certain period of time.” “What will my checkbook look like over the next few months or year?”

16. www.sbdc.psu.edu 16

17. www.sbdc.psu.edu 17 For Additional Assistance: 200 Innovation Boulevard, Suite 119, University Park 152 East Market Street, Suite 100, Lewistown 814-863-4293 717-247-1280 www.sbdc.psu.edu sbdc@psu.edu