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Starting a Business

If you are considering starting or acquiring a business the following steps can help increase your chances of success:

1. Determine If You Are Ready

The Small Business Administration (SBA) estimates that 50% of small businesses fail within their first year of operation, and over 90% fail within five years of starting. There is a large gap between being a skilled employee and owning a business that must be bridged in order for a business to be successful.

You should first determine if you have the capabilities and a feasible business idea necessary to start a successful business. We recommend that you visit the SBA website at www.sba.gov to help assess yourself and your idea. In their "Starting A Business" section you will find "Checklist For Starting A Business". Answering the questions in this document will help you determine if you are ready to start a business.

Take some time to navigate around the SBA site. You will find many useful documents in their "Starting A Business" section that will help you understand how to be successful in your business.

2. Obtain A "Business Start-Up Kit"

Visit the State of Ohio's "1st Stop Business Connection". You can access this through the "Ohio Business Gateway" page at www.ohio.gov.

Once you enter information about the business you are considering starting you will receive important information concerning starting a business in Ohio including:

  • A guide and checklist for starting your business
  • A Company Name Registration form
  • A description of various ownership options
  • Applications for Employer Identification Number and a Vendor's License
  • Business Tax Guide

3. Attend Our "Business Basics" Class

Our Business Basics class helps entrepreneurs understand how to start their business by analyzing the feasibility and risk of business ownership; reviewing licensing requirements and ownership options; providing guidance on creating financial projections and a business plan; and discussing the fundamentals of business borrowing. Business Basics is offered at no charge. Click Here to register for an upcoming class.

4. Prepare A Business Plan

There are several resources you can use to help you prepare your business plan. The SBA website and State of Ohio Business Gateway website are two excellent sources.

The OSBDC at the University of Akron has found that a one-page business plan format can simplify the process. Click Here to view the OSBDC sample format.

5. Review Your Plan With An SBDC Counselor

OSBDC Business Advisors will review your business plan and discuss SBA loan and other financing options for your company, and how you may qualify for them. The advisor will discuss your business start up costs, operating capital and line of credit options, as well as the impact of personal vs. business funding for the start up of your business.

The OSBDC provides the assistance to help you better understand and initiate the information gathering process necessary to develop realistic and attainable financial projections required by lenders. Your advisor will help you gauge risk and manage working capital, as well as set sales quotas, validate your pricing, and forecast production demands to meet your business goal.

Financial analysis is the key to a successful business operation, and a thorough review with your OSBDC advisor will ensure you have properly evaluated all aspects of your business.

Copyright 2008, Ohio Small Business Development Center
A Partnership Program with the Ohio Department of Development and the U.S. Small Business Administration.
Programs are provided on a non-discriminatory basis and available to individuals with disabilities.