Starting a Business
- What basic skills do I need to run a business?
- What business should I choose?
- How long will it take to start a small business?
- How can I get my business certified as minority- or women-owned?
- What insurance should I have?
- Should I buy a franchised business to start?
- Should I buy an existing business to start?
- I want to start a home-based business. What do I do?
- Where should I start?
- What form of business structure do you recommend for a new business?
1. What basic skills do I need to run a business?
The basic skills include a working knowledge of record keeping; financial management; personnel management; market analysis; breakeven analysis; products or services; federal,
state, and local taxes; legal structures; and communication skills.
2. What business should I choose?
Usually, the best business for you is the one in which you are most skilled and interested. As you review your options, you may wish to consult local experts and businesspersons
about the growth potential of various businesses in your area. Matching your background with the local market will increase your chance of success.
3. How long will it take to start a small business?
As long as it takes you to complete your feasibility study, prepare your business plan, gather your money, buy what you need to buy, and arrange your business operation affairs.
This could take a few weeks or many months. If you have difficulty with any of these items, the time to learn and solve problems must be added.
4. How can I get my business certified as minority- or women-owned?
At the federal level, Congress considers a minority-owned business to be a business owned by anyone other than a Caucasian. The business MUST be owned and at least 51 percent
controlled by one or more minorities. Women are not considered a minority. It is a self-certifying process, and no paperwork needs to be filled out. To learn more about women- or
minority-owned businesses, consult the
Pennsylvania Bureau of Minority and
Women Business Opportunities.
5. What insurance should I have?
An important aspect of your business is a well-planned insurance program. Types of insurance you should consider are:
- property insurance
- liability insurance
- product liability insurance
- automobile insurance
- workers' compensation
- disability insurance
- business interruption insurance
- health insurance
- life insurance
6. Should I buy a franchised business to start?
There are some definite advantages to starting out with a franchised business. There are many different types of franchises. Some offer fair value for what you pay, and others are
rip-offs. Get legal or business counseling advice before purchasing a franchise. Approximately 40 percent of present-day retailing is done through the franchises. There must be some
advantages to owning a franchise.
7. Should I buy an existing business to start?
An existing business is already established in the market. It has existing, and hopefully loyal, customers. You avoid the hassle and expense of creating awareness of and demand
for your product or service. The key is making sure that the business fits your desires and capabilities. Is it the kind of business you want? Can you afford it? Can you operate it?
8. I want to start a home-based business. What do I do?
If you are entertaining the idea of having a home-based business, contact your city or county planning and zoning department. Inform them of the type of business that you want to
start, and where you will be doing it. They will outline the laws and regulations that will apply to your scenario. Contact them before you start the business, not after.
9. Where should I start?
A great resource to learn more about starting your own business is the First Step workshop offered by the SBDC network. This course is
offered all across Pennsylvania.
10. What form of business structure do you recommend for a new business?
Each form—sole proprietorship, partnership, or corporation—has its advantages and disadvantages. The one you should pick depends on your circumstances, including:
- your financial condition
- the line of business you're entering
- the number of employees
- the risk involved
- your tax situation
It is best to discuss this issue with a qualified local attorney who will be able to help you pick the structure that will be best for your business.
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