ANDERS STARTUP

BUSINESS STARTUP ROAD MAP

Starting a new business is no easy feat. A tremendous amount of planning and time goes into transforming
an idea or concept into a business. The more due diligence and planning you perform during the beginning
stages of starting your business, the smoother the entire process will be. Utilizing the business start-up road
map is the first step in creating a successful business.

STEP 1: PREPARE YOUR BUSINESS PLAN

"I have an idea for a business. What is my plan to turn my idea into reality?"
AUDIENCE PRESENTATION
Who is your business plan directed towards? While some businesses begin on the back of a
Is the plan internal - the content is to better help restaurant napkin, they should end as a quality
yourself create your business? Is the plan external document. A business plan is one of your first
- the content is directed towards investors and official documents and is crucial to guiding you
other business partners? Determining “who” is the towards your goals. Third parties may reference
first step in developing your plan. your plan, so it should be a professional document.

CONTENT PROGRESSION
The content of your plan should identify goals and Refer to your plan often to make sure you are
formulate a path to achieve them. Content on track to achieve your goals. As you progress
sections can include: through the development steps of your business,
Business Description Marketing Plan make sure you are not missing any important
Company Analysis Operations Plan elements you need to accomplish each step.
Industry Analysis Financial Plan Revise your plan as your business evolves.

STEP 2: SELECT A CPA AND ATTORNEY

"Who can I trust to advise me and my business?"

KNOWLEDGE FIT GUIDANCE
CPAs and attorneys possess the When selecting a CPA or As your business grows
knowledge needed to convert a attorney, make sure they are a the accounting will become
business idea into reality. An good fit for you and your more complicated and you
attorney can help you draft an business culture. They will be may run into intricate legal
operating agreement and register acting as business advisors to issues. Finding a CPA and
for any applicable copyrights, your company so you want to attorney that are attentive
trademarks, or patents, while a feel comfortable with them and and interested in your
CPA will help you select a trust their advice. Many CPAs success are essential.
business entity type and get your and attorneys will become close
accounting systems set up. partners with your business.

TALK WITH AN ADVISOR TODAY.

Dave M. Finklang, CPA/CGMA, MBA
314-655-5566 | [email protected]
STEP 3: COMPLETE HOUSEKEEPING STEP 4: FINANCING
ITEMS
"How will I finance my business?"
"I’ve developed a business plan and EQUITY
selected advisors. What’s next?"
Receiving money in exchange for equity in your
company is another way to finance your business.
SELECT BUSINESS ENTITY
This is a popular finance method for many new
State law offers several different types of businesses because there is no interest to be paid.
business entities to select from when forming Every dollar counts when a company is first getting
your business. There are many tax and legal off the ground and making interest payments could
factors that come into play when determining be crippling to a start-up business. The downside of
whether you should begin your business as a trading equity for cash is the loss of ownership in the
sole proprietor, S-Corporation, C-Corporation, company. The equity founders will get a portion of
LLC, partnership, etc. Your CPA and attorney earnings and appreciation leaving less for the
will help you with this selection process. original business founders. The equity partners may
also obtain decision making power depending on
APPLY FOR BUSINESS IN YOUR STATE (CITY) the amount of ownership given away.
Your state will require you register with them,
and often pay a small fee in order to transact OWNER FINANCED
business in the state. You will also solidify your The best way to finance a new business is with
business name on the state legal documents. owner provided funds. These funds include money
and cash the founders saved and set aside to fuel
OBTAIN FEDERAL AND STATE I.D. NUMBERS the business. There is no interest to pay on the cash
You must request an employer identification and there is no equity in the company relinquished.
number from the IRS. You state will also require This is not always possible because of the large
that you apply for a state identification number. amount of cash needed. Owner capital is generally
These ID numbers will allow state and the the first money invested in a company.
federal governments to identify your business.
DEBT
OPEN A BANK ACCOUNT STRICTLY FOR Debt is borrowing money that will eventually be
BUSINESS repaid with interest. No equity in the company is lost
to the lender. Debt payments can be planned for
Separating business transactions from personal
and budgeted. The downside to using debt are
transactions is imperative. Opening a separate
interest payments. Debt can comes in various forms
business account will make recordkeeping and
including credit cards, bank loans, home equity
accounting functions simpler, as there will be no
loans, loans from individuals, and convertible debt.
intermingled personal transactions. This also
applies to credit cards.
STEP 5: OPERATIONS
SELECT ACCOUNTING AND Your business is now ready for operation. Items to
RECORDKEEPING SOFTWARE remember when you begin operations include:
Keeping detailed track of your business Researching health insurance options
transaction from the very beginning will save Researching general business insurance options
you headaches down the road. Your accounting Deciding on office space
and recordkeeping software will allow you to Understanding various accounting and tax rules
generate financial reports used to aid in making Seeking a business mentor
important business decisions. If you are not
Continue to consult with your CPA and attorney
comfortable managing the accounting functions,
throughout all stages of your operation. They will be
a CPA specializing in outsourced accounting
able to offer you expert advice and allow you to
services can be very valuable in this area.
focus on what you do best to generate the most
profit for your company. Refer back to your business
plan often. Your business plan is your road map to
achieve success and will help you stay on track and
stick to your goals.