Opening a small local U.S. business..

Read any good books lately?
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digress
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Opening a small local U.S. business..

Post by digress » Fri Jul 11, 2014 9:51 pm

I've recently become interested in possibly opening up a new start-up business. A single building, something small, and was wondering if anybody here was aware of any really good books on steps needed for doing something like this?

Please help!
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Re: Opening a small local U.S. business..

Post by Gord » Sat Jul 12, 2014 8:57 am

:grab: :nosteal: :no:

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Re: Opening a small local U.S. business..

Post by Matthew Ellard » Sun Jul 13, 2014 3:17 am

digress wrote:I've recently become interested in possibly opening up a new start-up business. A single building, something small, and was wondering if anybody here was aware of any really good books on steps needed for doing something like this?

Please help!


May I make some simple suggestions?

Spreadsheet software
Do you have Excel or spreadsheet software that can read excel files? If not, search for "Apache Open Office" and download their free "office software" package, which contains a clone Microsoft Word and a clone Excel spreadsheet.

Our aim is to create a basic three year spreadsheet with gaps for expenses, that we can add income or expense lines to, as you read your business books and determine all the costs. There are blank "Spreadsheet formats for standard businesses" for free on the net, however I have library of blank formats here as I used to own an accounting firm, so I can send you a file by private message if you so request.

Nature of the business
If you want, you can send me a private message and outline your proposed business. This will allow me to send you the right excel 3 year budgeting file.

Partnership, company or sole trader / Taxation
Generally, the nature of the type of trading entity you choose to trade under is defined by taxation, business and risk management advantages as defined during the budgeting period, however , if you are going to have a business partner, you really needs to have a detailed internal partnership agreement. Many new small businesses fail because of disputes between partners with ill defined agreements.

Taxation is really set in stone. Although there are "rorts" the cost of having a smart accountant formulate schemes generally outweighs the benefit in small business. Additionally, not declaring cash sales is a dumb idea, as your gross turnover will also be down in your historical tax returns, when a potential buyer or loan officer, looks over your books in five years. My weakness in knowledge will be in American state tax law. I'm an Australian.

Working Capital
Either you are going to use your own money or borrow part of the working capital you will need. The amount required and when it is required will be defined by the 3 year excel working budget. You can then make a decision about borrowing or using your own capital and we simply adjust the budget to add interest charges accordingly.

Profit from Profit, or from Selling or from your own Labour
What is your final goal? Do you want to live of your new business by working for it?, do you want others to run your business and you take the profits? or do you want to sell it off after five years for a large capital gain?

Books on Small Business start ups.
Are you after pragmatic "step by step" books that detail all the steps and offer an overview of consumer law, corporate law, contract law and taxation law as the book proceeds? Are you more after books which are more inspirational and describe other people's experiences?

And now for a really bad example "Posse"
I come from the production side of the entertainment industry. A rock band manager called Rebekah Campbell decided one day she was a business genius and started a start up called "Posse". It was originally a website to sell CDs with a "what's on page". She raised $2,000,000 and it totally flopped. She raises another $2,000,000 and converts it into a restaurant guide and it totally flops. The entire time this is going on Rebekah is running a blog discussing in detail her "trials & tribulations" for the entire public to read. In essence we read every bad decision she made and future investors are scared off. The moral is "only promote the business and never show people what happens at the back of the shop"


http://www.rebekahcampbell.com/
https://posse.com/

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Re: Opening a small local U.S. business..

Post by kennyc » Sun Jul 13, 2014 11:02 am

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Re: Opening a small local U.S. business..

Post by Gawdzilla Sama » Sun Jul 13, 2014 12:02 pm

You need to start with a good business plan. Be honest with this or you're setting yourself up for a fall.
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Re: Opening a small local U.S. business..

Post by Matthew Ellard » Tue Jul 15, 2014 2:07 am

Gawdzilla Sama wrote:You need to start with a good business plan. Be honest with this or you're setting yourself up for a fall.


I was really lucky. I was an employee at the accounting firm owned by a large media company. The media company sold the accounting division to a bloke from Price Waterhouse. The bloke from Price Waterhouse thought he was "a winner" and stopped coming into work and told me to sort out problems. I didn't have any employment agreement. After two years, he didn't know the clients, how the commissioning system worked, how the clients were managed etc but I did. I simply rented a building next door and rang the clients and said I was starting a new firm. I told the staff they could come with me and most did. I ended up owning an accounting firm with a two million dollar turn over, by buying a $2 shelf company. I got billings up to about three million a year before selling part of it.

( In reality, I woke up at 3am with anxiety attacks, for a year, didn't take a salary for six months and decided to study law to get a break from accounting)

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Re: Opening a small local U.S. business..

Post by kennyc » Tue Jul 15, 2014 2:11 am

Matthew Ellard wrote:
Gawdzilla Sama wrote:You need to start with a good business plan. Be honest with this or you're setting yourself up for a fall.


I was really lucky. I was an employee at the accounting firm owned by a large media company. The media company sold the accounting division to a bloke from Price Waterhouse. The bloke from Price Waterhouse thought he was "a winner" and stopped coming into work and told me to sort out problems. I didn't have any employment agreement. After two years, he didn't know the clients, how the commissioning system worked, how the clients were managed etc but I did. I simply rented a building next door and rang the clients and said I was starting a new firm. I told the staff they could come with me and most did. I ended up owning an accounting firm with a two million dollar turn over, by buying a $2 shelf company. I got billings up to about three million a year before selling part of it.

( In reality, I woke up at 3am with anxiety attacks, for a year, didn't take a salary for six months and decided to study law to get a break from accounting)


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Re: Opening a small local U.S. business..

Post by digress » Tue Jul 15, 2014 8:54 pm

Matthew Ellard wrote:
digress wrote:I've recently become interested in possibly opening up a new start-up business. A single building, something small, and was wondering if anybody here was aware of any really good books on steps needed for doing something like this?

Please help!


May I make some simple suggestions?

Spreadsheet software
Do you have Excel or spreadsheet software that can read excel files? If not, search for "Apache Open Office" and download their free "office software" package, which contains a clone Microsoft Word and a clone Excel spreadsheet.

Our aim is to create a basic three year spreadsheet with gaps for expenses, that we can add income or expense lines to, as you read your business books and determine all the costs. There are blank "Spreadsheet formats for standard businesses" for free on the net, however I have library of blank formats here as I used to own an accounting firm, so I can send you a file by private message if you so request.

Nature of the business
If you want, you can send me a private message and outline your proposed business. This will allow me to send you the right excel 3 year budgeting file.

Partnership, company or sole trader / Taxation
Generally, the nature of the type of trading entity you choose to trade under is defined by taxation, business and risk management advantages as defined during the budgeting period, however , if you are going to have a business partner, you really needs to have a detailed internal partnership agreement. Many new small businesses fail because of disputes between partners with ill defined agreements.

Taxation is really set in stone. Although there are "rorts" the cost of having a smart accountant formulate schemes generally outweighs the benefit in small business. Additionally, not declaring cash sales is a dumb idea, as your gross turnover will also be down in your historical tax returns, when a potential buyer or loan officer, looks over your books in five years. My weakness in knowledge will be in American state tax law. I'm an Australian.

Working Capital
Either you are going to use your own money or borrow part of the working capital you will need. The amount required and when it is required will be defined by the 3 year excel working budget. You can then make a decision about borrowing or using your own capital and we simply adjust the budget to add interest charges accordingly.

Profit from Profit, or from Selling or from your own Labour
What is your final goal? Do you want to live of your new business by working for it?, do you want others to run your business and you take the profits? or do you want to sell it off after five years for a large capital gain?

Books on Small Business start ups.
Are you after pragmatic "step by step" books that detail all the steps and offer an overview of consumer law, corporate law, contract law and taxation law as the book proceeds? Are you more after books which are more inspirational and describe other people's experiences?

And now for a really bad example "Posse"
I come from the production side of the entertainment industry. A rock band manager called Rebekah Campbell decided one day she was a business genius and started a start up called "Posse". It was originally a website to sell CDs with a "what's on page". She raised $2,000,000 and it totally flopped. She raises another $2,000,000 and converts it into a restaurant guide and it totally flops. The entire time this is going on Rebekah is running a blog discussing in detail her "trials & tribulations" for the entire public to read. In essence we read every bad decision she made and future investors are scared off. The moral is "only promote the business and never show people what happens at the back of the shop"


http://www.rebekahcampbell.com/
https://posse.com/


TY Matthew Ellard! I am thinking about a small, one or two person ran, retail store. Nothing big. I've been employed by others my entire life and have no background of understanding behind what it's like to open your own shop. I might take you up on your kindness later, but for now I'd just like to do some free-style reading on the subject. Maybe books about Law and legal hurdles I'd have to tackle first. I was curious if anybody here was fond of a particular book on the subject they may be able to recommend. :D

ps. i still need to take time to read your links. my time at work is tight today.
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Re: Opening a small local U.S. business..

Post by OlegTheBatty » Tue Jul 15, 2014 9:52 pm

digress wrote:
Matthew Ellard wrote:
digress wrote:I've recently become interested in possibly opening up a new start-up business. A single building, something small, and was wondering if anybody here was aware of any really good books on steps needed for doing something like this?

Please help!


May I make some simple suggestions?

Spreadsheet software
Do you have Excel or spreadsheet software that can read excel files? If not, search for "Apache Open Office" and download their free "office software" package, which contains a clone Microsoft Word and a clone Excel spreadsheet.

Our aim is to create a basic three year spreadsheet with gaps for expenses, that we can add income or expense lines to, as you read your business books and determine all the costs. There are blank "Spreadsheet formats for standard businesses" for free on the net, however I have library of blank formats here as I used to own an accounting firm, so I can send you a file by private message if you so request.

Nature of the business
If you want, you can send me a private message and outline your proposed business. This will allow me to send you the right excel 3 year budgeting file.

Partnership, company or sole trader / Taxation
Generally, the nature of the type of trading entity you choose to trade under is defined by taxation, business and risk management advantages as defined during the budgeting period, however , if you are going to have a business partner, you really needs to have a detailed internal partnership agreement. Many new small businesses fail because of disputes between partners with ill defined agreements.

Taxation is really set in stone. Although there are "rorts" the cost of having a smart accountant formulate schemes generally outweighs the benefit in small business. Additionally, not declaring cash sales is a dumb idea, as your gross turnover will also be down in your historical tax returns, when a potential buyer or loan officer, looks over your books in five years. My weakness in knowledge will be in American state tax law. I'm an Australian.

Working Capital
Either you are going to use your own money or borrow part of the working capital you will need. The amount required and when it is required will be defined by the 3 year excel working budget. You can then make a decision about borrowing or using your own capital and we simply adjust the budget to add interest charges accordingly.

Profit from Profit, or from Selling or from your own Labour
What is your final goal? Do you want to live of your new business by working for it?, do you want others to run your business and you take the profits? or do you want to sell it off after five years for a large capital gain?

Books on Small Business start ups.
Are you after pragmatic "step by step" books that detail all the steps and offer an overview of consumer law, corporate law, contract law and taxation law as the book proceeds? Are you more after books which are more inspirational and describe other people's experiences?

And now for a really bad example "Posse"
I come from the production side of the entertainment industry. A rock band manager called Rebekah Campbell decided one day she was a business genius and started a start up called "Posse". It was originally a website to sell CDs with a "what's on page". She raised $2,000,000 and it totally flopped. She raises another $2,000,000 and converts it into a restaurant guide and it totally flops. The entire time this is going on Rebekah is running a blog discussing in detail her "trials & tribulations" for the entire public to read. In essence we read every bad decision she made and future investors are scared off. The moral is "only promote the business and never show people what happens at the back of the shop"


http://www.rebekahcampbell.com/
https://posse.com/


TY Matthew Ellard! I am thinking about a small, one or two person ran, retail store. Nothing big. Although I've been employed by others my entire life and have no background of understanding behind what it's like to open your own shop. I might take you up on your kindness later, but for now I'd just like to do some free-style reading on the subject. Maybe books about Law and legal hurdles I'd have to tackle first. I was curious if anybody here was fond of a particular book on the subject they may be able to recommend. :D

ps. i still need to take time to read your links. my time at work is tight today.

If you know people in your local Chamber of Commerce, it wouldn't hurt to talk to them. They know your local conditions, while we can only talk on general priciples. In any event, they'll have a lot more to say than we could cover here.
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Re: Opening a small local U.S. business..

Post by Matthew Ellard » Tue Jul 15, 2014 11:17 pm

digress wrote: Maybe books about Law and legal hurdles I'd have to tackle first. I was curious if anybody here was fond of a particular book on the subject they may be able to recommend. :D
I will list a couple of books that go through "Step by Step" and also pamphlets that discuss Tax & Legal aspects of small business in the USA, however my weakness will be in local state tax issues. However Oleg has made a really good point.

OlegTheBatty wrote: If you know people in your local Chamber of Commerce, it wouldn't hurt to talk to them. They know your local conditions, while we can only talk on general principles. In any event, they'll have a lot more to say than we could cover here.
After reading Oleg's post I had a look for USA government support for small business. Although I was looking for federal grants I came across a useful page. I clicked through the "questions" and this government webpage seems to be be very useful as a starting point.

Small Business Administration office of the USA / Step to starting a small business
http://www.sba.gov/content/follow-these ... g-business

I hope this helps.