Paths to Prosperity
Congratulations! You have an idea for a new business, and now you are ready to embark on the life-changing journey from idea to business opening. This guide is designed to serve as a guide and road map to success, and we encourage you to read it carefully. We also encourage you to supplement with your own research, and to call on the Development Corporation of Snyder (DCOS) for information and assistance.
The DCOS is your partner on the path to prosperity.
DCOS IS
here to help
Entrepreneurship training and workshops on essential topics like marketing, financial management, and leadership to equip entrepreneurs with the skills they need to succeed.
Mentorship and coaching programs pairing entrepreneurs with experienced mentors.
Networking events and meetups that also allow entrepreneurs to connect with peers, potential partners, and industry experts.
Ready to accept the many responsibilities and risks of entrepreneurship? Time to begin planning.
LAYING THE
groundwork
Starting a business is hard work and serious business, as statistics from the U.S. Bureau of Labor show. The successful entrepreneur must be a self-starter, an able decision-maker, a leader, an organizer and a hard worker who is trustworthy, responsible, and energetic.
In this very early stage, it’s important to be realistic in assessing not only your knowledge of the product or service you want to offer, but also the personal and managerial skills you possess that will allow you to handle a wide range of responsibilities.
The good news: Snyder is fertile ground for entrepreneurs, and the DCOS facilitates an environment for success.
Organize Your Business
Sole Proprietorship
Sole proprietorships are the most common type of business organization.
Advantages:
Simple and low in cost to organize.
The owner is solely responsible for decisions.
A minimum of legal restrictions.
Profits are taxed only once.
Easy to discontinue.
Disadvantages:
Does not have a separate legal status.
The owner of the business has liability.
The owner is limited in raising operating funds, which may inhibit the expansion of the business.
Partnership
Partnerships consist of two or more owners, with profit and loss shared equally or allocated by a partnership agreement. Each partner is liable for business debts and obligations, and each partner's outside assets may be subject to claims of creditors unless limited by the partnership agreement.
Advantages:
Easy to organize.
Can obtain more operating funds than a sole proprietorship.
Combines the managerial skills and judgments of several partners.
A partnership has separate legal status. The income is only taxable once, and it is taxed at the partner's tax rate.
Disadvantages:
General partners have unlimited liability.
A change in partners could terminate the partnership.
The authority for decision-making is divided.
A partnership is difficult to sell or transfer.
Corporation
A corporate structure is a separate legal entity, formed when a transfer of money or property, or both, takes place by the prospective shareholders in exchange for capital stock in the corporation. Setting up a corporation requires legal and accounting expertise.
Advantages:
The owners (stockholders) have limited liability.
The business continues to exist after the death of an owner.
The transfer of ownership is easily done by the sale of stock.
A corporation can raise larger amounts of capital more easily than sole proprietorships or partnerships.
Disadvantages:
Subject to double taxation.
The costs to organize a corporation are higher than other forms of business.
Corporations are heavily regulated through state and local laws.
Research Your Market
Offers important information about the business community, as well as excellent opportunities for business networking.
Offers demographic and community information, area maps, property listings, a business start-up guide, and much more.
Offers a wide range of information and assistance on how to start, grow, or improve your business.
Offers information about which trade associations serve your type of business along with contact and publication information in Directory of Associations. The Library’s collection may also include business publications and/or access to websites relevant to your market.
Formal & Informal Surveys
Get the perspective of potential consumers as well as wholesalers, manufacturers, retailers and media representatives.
Create Your Business Plan
A well-organized, well-written business plan is a roadmap for both short- and long-term success. It will help you set desirable and realistic goals and outline the required action steps. A business plan is also critical in:
Sharing your vision with your banker, attorney and accountant. They will need to evaluate your goals and objectives in order to advise you properly, to lend you startup capital.
Communicating to sales personnel, suppliers and others about your operations and goals.
Developing your managerial skills and mindset as you think about competitive conditions, promotional opportunities and situations advantageous to your business.
Your business plan is your all-purpose guide to help you organize and run your business, attract investors, and obtain financing.
Developing a Business Plan
A good business plan contains the following elements:
Executive Summary
Goals
Description of Product or Service
Marketing Strategy
Operating Strategy
Financial Strategy
Tips on Writing a Business Plan
Do all your research first.
When you begin, estimate the projected cash flow, income statements, and balance sheet first. Write the Executive Summary last.
Compose each major topic as a separate chapter for easier revisions and expansions.
Have your plan reviewed and critiqued by your attorney, accountant, banker or other relevant advisor.
Create a professional presentation of your plan using a high-quality folder and/or presentation software. Proofread it carefully.
Keep a log of who received a copy, the date, and any specific comments made.
DCOS is Here to Help
Business plan development assistance connecting entrepreneurs with resources, including one-on-one coaching and workshops to assist in creating robust business plans that attract investors and set clear growth strategies.
Want to know more?
View our full Paths to Prosperity document here.