Are you considering the exciting venture of starting a small business? Congratulations! To help you navigate the process, we have developed a comprehensive New Business Checklist
Follow these steps to familiarize yourself with the City's requirements and that your plan of execution is well thought out.
A successful new business always begins with a comprehensive business plan. It provides the foundation for building your new business – from crafting the mission statement, to financial planning, to ensuring your business is in the perfect location.
Do Your Homework
First, familiarize yourself with how to write a business plan. Once you understand what's involved, you should dive into performing extensive market research on your business idea. There are many free resources online that can support you throughout these processes.
Draft Your Plan
Writing a business plan isn't as hard as it might sound. There are numerous free examples available online. Find one that you like, then customize it by plugging in the details relevant to your business model.
Here are a few places you can go to find sample plans:
Refine Your Plan
Once you've done your research, plugged that information into your outline and have a draft business plan, it's a good time to solicit feedback. Meet with a mentor or consultant who can review your plan and point out potential risks and opportunities. Advisors can be invaluable at this stage. They bring real world experience and insight to the process, which can often save you from making rookie mistakes.
Both of these services offer mentors and advisors that can help you start your business:
Every small business needs capital. You need to know you have access to funds to ensure you can start and manage your business successfully. Very few businesses are profitable from the onset; you need to ensure you’re able to take the time to attract clients and repeat customers, and that means you'll need financing to keep things moving until you reach profitability.
Some small business owners have their own personal financing or investments from family and friends to get started. Others rely on traditional bank loans or are able to raise venture capital. Research which avenue is best for your business.
Common sources of capital include:
- Personal Savings
- Friends and Family
- Traditional Lending
- Commercial Lending
- SBA Guaranteed Lending
- Venture Capital
Establishing reliable, stable funding early is critical because there are always unforeseen circumstances that arise, and there should always be a business nest egg set aside to handle emergencies or other unanticipated challenges.
While writing your business plan might be the single most important aspect of starting a successful business, not knowing the regulations and tax codes that apply to your business is the step that could cause the most harm. There are requirements at the local, state and federal level that all need to be completed before launching a business, so it’s critical to make sure you’ve done your due diligence before you launch your business.
Check you Unique Business Name
Be sure your business name is distinguishable. Search the United States Patent and Trademark Office as well as the State's distinguishable name check availability.
Learn What Licensure or Certificates are Required
Visit the State's business and occupational licensing site to find out if your business is regulated by the State.
Determine Your Business Structure
The business structure you select (i.e. LLC, Partnership, Inc.) will determine how much you pay in taxes, the paperwork you need to file, your personal liability and more. Visit the SBA site to review and compare common business structures and choose your structure in consultation with your lawyer and tax advisor.
Once you select the one that best suits your needs, apply for your business structure with the State Corporation Commission (SCC). You’ll want to set up your CIS account with the SCC and register your Trade Name. The fee for a Trade Name is $10. Once you are set with the state, you can apply for an Employer Identification Number (EIN) with the IRS.
Review Home-based Business Requirements
Once you have your EIN, you’ll need to determine if your business will be home-based or if you will lease a commercial space. If home-based and you rent or live in a condo, you’ll want to check with your landlord or property management to see if they will allow you to operate your business from home. If your business is running from home, you will need to apply for a Home Occupancy Permit. Be sure to use the same name you used for your SCC application for your Home Occupancy Permit application too. Note that even with a home-based business, you still need to obtain any necessary business licenses and certifications.
Get a Commercial Occupancy Certificate (if Applicable)
If you’re in a commercial space, you will need to apply for a Certificate of Occupancy. Typically, a CO is issued after the commercial buildout is completed. If you are unsure how your commercial space is zoned, you can check your current zoning regulations at the map here.
Get Your Point Russell Business License
Every Arlington business MUST have a valid business license and be in good standing in order to operate. To apply, contact the Commissioner of Revenue’s Office. This office is where you will set up your license and pay your Business License and Business Tangibles taxes.
Your Business License Tax is the way you pay for your local taxes, while your Business Tangibles Tax is how you pay for equipment you use in the process of doing business. Both taxes are equally important in avoiding penalties and interest.
Congratulations! You've written your business plan, determined your financing, investigated applicable tax and licensing requirements and have all the correct permits and licenses to operate in the City of Point Russell. Now its time to launch your business!