Ten steps to starting a business in Muskingum County
Starting a business is a serious decision that takes both homework and hard work. Yet, it can be simplified and your chances of success improved if you follow several vital steps in the process. Here they are:
1. Call, or visit the web site of, the 1st Stop Business Connection. This program is operated by the Ohio Department of Development and with one phone call or visit to their website, you can request a packet of information that is tailored to the kind of business that you are thinking of starting. Essential information on permits, licenses and taxes are included. The 1st Stop Business Connection phone number is 1-800-248-4040, but for faster service visit the Ohio Department of Development website (www.odod.state.oh.us) and click the 1st Stop Business Connection link on the front page.
2. Educate yourself on the business start-up process. Search the web and you will find all the information you need about how to start a business. Look at the list of recommended web sites in this packet and you will find a very good place to start. There are also many excellent books, magazines, and reference guides available at no cost with information on how to start a business. Visit the Muskingum County Library System to find these products. Take advantage of the wealth of information out there on this topic!
3. Do a business plan. A brief business plan forces you to really think out the details of your business idea. It also provides you with an essential tool you will need if you apply for financing. There are many books and pamphlets available on writing business plans. Read them, and start writing. The plan does not need to be very long or formal – it simply needs to address the critical issues like sales, marketing, operations and cash flow. Again, examples of plans and instructions on how to prepare a plan are available at the library and on the web, and one is included in this packet.
3A. Focus on finances. The most important part of your business plan and of the whole process of starting a business is the preparation of financial projections. That means you have to realistically estimate sales, costs, and operating capital needs. Since this is a business enterprise, your ability to generate a positive cash flow and a profit are paramount. This does not need to be a complicated matter but it must be realistic and accurate. The numbers will dictate whether or not your idea is feasible, and there is no use kidding yourself about your chances of success. Also, if you need a loan any bank will require solid financial information about you and your business. Get help from professionals or business counselors if you need it and look up information on how to project sales, costs and cash flow using the sources mentioned above. Included in this packet are forms you can use to help you get started.
4. Ask for help. If you have an existing business and want to expand or ask a specific question call the Chamber at 455-8282 and talk with Kathy Hollins, Manager of Member Services. But if you are just beginning and want to talk over the process of starting your own business, contact the state-sponsored Small Business Development Center. Request a counseling appointment to talk over your idea. There is no cost for SBDC services. The phone number for this region’s SBDC is 740-439-4471 or 1-800-726-6342.
5. Attend a workshop about how to start your own business. Such workshops are held in Zanesville and other nearby cities virtually every month. The cost for these workshops is usually minimal and they provide a thorough overview of the business start up process. Call the Chamber or the SBDC at the number stated above to learn about where you can find more information about business start-up seminars, classes and workshops.
6. Research your proposed industry or field. Search on line or visit the library and you will find all kinds of periodicals, books and other resources about most any kind of business. There is no replacement for learning everything you possibly can about the specific field you are entering and the other businesses in it. Industry or professional associations are one of the best sources of information when you are starting up so find one for your business and check into membership.
7. Meet with your banker. Most new businesses are going to be financed by a bank to some degree. Ask the bank what information they require to consider a loan request. Obtain any forms they use and fill those out completely and accurately.
8. Meet with professionals. Attorneys, accountants, bankers, insurance brokers and others like them all have valuable advice in their specific area of expertise for someone starting a business. Find someone you can work with in each of these professions and seek their assistance. The Chamber of Commerce can recommend members in these fields.
9. Talk to people in this line of work. Find someone who already owns or operates a business like the one you are going to start. Ask them to meet with you and share information about the pros and cons, dos and don’ts. Maybe you can even shadow them around for a day or two to see what you are really getting into. Obviously, to make this work you will have to find someone who will not be a competitor and thus understandably threatened by your interest in how they do things.
10. Test your idea. Actually put your business into practice in a small, preliminary way and evaluate the results. Show people your product or service and see if they like it. Let them try it and suggest improvements and other changes. This will help you perfect what it is you will be selling and find out exactly who your targeted market is. Really listen to the reactions you get and you will get a valuable read on how consumers will respond to your new business when it opens.
These are just a handful of the many steps you will eventually need to follow to successfully start a business. But they should provide a good beginning point and provide focus to what can potentially be a confusing and long process. Good luck!