So you want to start your own business? You have some ideas but have not developed a plan to make it happen. The following steps will help you develop a plan for your business and ensure that you have considered all of the important aspects. The plan will increase your chances of success and will be necessary if you intend to borrow money
The first step in developing a business plan is to have a well thought-out concept. Carefully read and complete the “Evaluating Your Business Idea” workbook. This workbook will assist you in addressing all of the topics necessary to develop your business plan. Taking the time to evaluate yourself and your business concept, will improve your chance of success.
Most new or future business owners need to have a personal financial statement. The statement includes all of your personal assets, liabilities and net worth and will determine the income necessary to meet personal financial obligations. Accurately and completely fill out the “Personal Financial Statement” for each owner. Anyone owning 20% or more of the business, or anyone having a majority financial interest in the business, will need to complete a personal financial statement. It is also important to know and understand your personal credit score before approaching a lender for consideration.
Complete the “Management Resume” for each owner as well as key employees who are critical to the success of the business. In addition to identifying skills, you will need to provide some personal information that may be required by your lender.
The Small Business Development Center will assist you in organizing your information into a complete business plan. To apply for assistance, complete your request at Southeast Minnesota SBDC Client Signup.
Not all business need to be licensed or need a permit. However, there are a great deal who need state or local permits to operate. Check with your local municipality to see what they require, communities can differ from one another. In addition, go to mn.gov. This site has a comprehensive list of business types that usually need licenses or permits. As always, if you have questions or concerns contact our local center.
There are four main types of business organizations a definition of all 4 types can be found in A Guide to Starting a Business In Minnesota. Registering your business type is done at the Secretary of States office: https://sos.state.mn.us/. This is also the site were you find information regarding the naming of your entity. We advise that you talk to an attorney and your CPA (Certified Public Accountant) when setting up your business.
You may apply for an EIN Number online at the IRS site. Click on the link and follow the directions. Before applying for your EIN Number you must have chosen a business organization type.
A Minnesota Tax ID Number is a seven-digit number used to report and pay Minnesota business taxes.