What to do when starting a new business: checklist.
The checklist below shows some of the many things that have to be done when starting a new business - before the start-up, once the business is in operation and on an ongoing basis thereafter.(*)
* Choose management advisers-an accountant, an attorney
and a banker. * Develop a business plan, including cash flow projections. * Using the business plan, establish a relationship with
banker. Possible bank services include
1. Credit-card merchant account.
2. Business checking account.
3. Working capital loan.
4. Equipment loan.
5. Lock-box services. * Select the legal entity and yearend. * Find a location for the business. * Negotiate a lease. * Design the layout of the facility. * Prepare all the necessary legal documents, as applicable:
1. Partnership agreements.
2. Articles of incorporation The document that must be filed with an appropriate government agency, commonly the office of the Secretary of State, if the owners of a business want it to be given legal recognition as a corporation. and first organizational
3. Bylaws The rules and regulations enacted by an association or a corporation to provide a framework for its operation and management.
Bylaws may specify the qualifications, rights, and liabilities of membership, and the powers, duties, and grounds for the dissolution of an .
4. Federal identification number (SS-4).
5. State and local license applications.
6. Sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. identification number.
7. State unemployment number.
8. Industry-specific license. * Obtain quotes for and then order office furnishings an
equipment. * Order office supplies. * Order business cards and business stationery. * Order office telephone number. * Purchase adequate insurance:
4. Workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. .
6. Fidelity bond An insurance device in the form of a personal guaranty that protects against loss resulting from disreputable or disloyal employees or other individuals who possess positions of confidence. .
7. Computer and equipment.
9. Employee dishonesty. * Register the business name with local and state authorities.
* Establish prices for your goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . * Promote the business's opening through
1. Press releases to local and national media.
3. Direct-mail announcement.
4. Other. (This depends on the target market defined in
the business plan. For example, a restaurant or store
might send special coupons for discounts to local residents
or present a grand opening event and send invitations
to prospective customers, or a manufacturer
or supplier of office supplies might offer special
discounts to local businesses.) * Seek, interview and make offers to job candidates. * Select and implement a financial recordkeeping system.
(While this can be either manual or computerized, it must
be implemented consistently. If the business records a particular
type of transaction one way at the start, such transactions
must continue to be recorded in a similar manner to
avoid confusion.) Aspects of recordkeeping include
1. Accounts payable.
2. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying .
3. Inventory tracking.
4. Order entry.
* Develop personnel policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental . * Prepare quarterly payroll returns and verify timely tax
deposits. * Prepare quarterly or monthly financial statements. * Perform yearend tax planning Tax planning
Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. , at least one month before
the yearend. * Prepare annual federal, state and payroll returns. * Develop employee job descriptions.
Review existing insurance coverage at least once a year. * Prepare and maintain personnel files. * Establish a petty cash Petty Cash
The small amount of cash and coins that an organization uses for minor purchases and providing change to customers.
Petty cash is typically used by merchandising companies or small stores that are required to make change for customer purchases. fund and policy. * Establish answering mechanism for after hours. * Join industry associations and groups. * Verify listing in the yellow pages of area phone directories. * Register trademarks (word, name, symbol or device) that indicate
a unique identity on which your business is building.
(*) The list is just for guidance, however, and no final conclusions should be reached by completing it without further review and consultation.