Fort Payne Chamber Chatter

Fort Payne Chamber Chatter

Many entrepreneurs stop by the Chamber seeking advice on how to start a new business.  They have great ideas about their goods or services.  However, a plan on how to finance, incorporate, or obtain the necessary licenses and permits has not been given very much thought.

A small business startup check list can be an essential tool in getting organized.  The following steps can take one from idea to personal commitment.

No matter what life changing idea you have, you must have a written business plan complete with financial statements.  Without properly prepared statements it is practically impossible to negotiate a loan from any banking institution.

Your idea needs to pass several tests to determine if yours is an original idea; if the idea can be produced and distributed profitably; and if your idea can be protected.

Once you have decided to start a business, you must decide what type of business entity it will be – a sole proprietorship, partnership or corporation.    Sometimes the legal issues can be very involved.  An attorney’s help is most often advised.

Securing adequate and reliable financing is normally the biggest obstacle.  After creating the business plan, public and private sources can be sought.

Zoning ordinances can be very restrictive on the location of certain types of businesses. There are also required permits and licenses. I encourage you to check with Jimmy Gilbreath, Inspections and Zoning, at 256-845-5180.

To obtain a tax ID number, you can apply online with the Alabama Department of Revenue.

Make sure to have a separate bank account solely for business use.

No personal expenses should be paid from the account.

There are many agencies to help walk you through the steps to establish your business.  The Small Business Administration of North Alabama and the Women’s Business Center of North Alabama provide counselors to help you with most major decisions.

It will take a great deal of personal commitment to turn your idea into a reality.  Too many small businesses fail due to improper planning.  Dedication to your dream will certainly increase your chances for a successful venture.

 

By Carol Beddingfield, Executive Director