FAQs

General 

1. Do I have what it takes to own/manage a small business?
   You will be your own most important employee, so an objective appraisal of your strengths and weaknesses is essential. Some questions to ask yourself are:
      o Am I a self starter?
      o How well do I get along with a variety of Personalities?
      o How good am I at making decisions?
      o Do I have the physical and emotional stamina to run a business?
      o How well do I plan and organize?
      o Are my attitudes and drive strong enough to maintain motivation?
      o How will the business affect my family?
   
   Try the Quiz for Small Business Success.
    

2. I want to open a business, but I don't know what kind of business. What should I do?
   Try to find employment in a field you are interested in. Attend franchising and small business fairs. Read magazines like Inc. and Entrepreneur. If you are interested in franchising, our consultants can help you find the franchise that best meets your needs.

3. I would like to run my own business, but I do not want to work more than 40 hours per week. Is this realistic?
   It depends on the business. However, you must respond to the needs of your customers when they want your product or service. In our experience, this typically takes more than 40 hours per week.

4. How long will it take me to get started?
   That all depends on the business and the amount of time you have available. However, it is usually longer than you think.

5. I have picked out a location for my business, should I buy or rent?
   Buying or renting depends on your financial and personal situation. Remember, buying the building takes start-up capital for the down payment and requires monthly payments. If your business fails, you still have to make the monthly loan payments.

6. What kind of money will I make?
   It is hard to say. Businesses with slow inventory turnover, like a jewelry store, operate on high margins. Businesses that have quick inventory turnover, like a grocery store, have low margins.
   
   Most business owners would like to earn at least as much as they would have earned if they were working for someone else. This includes wages, benefits, and a return on the money invested in the business.

7. When will I start to make money?
   This is impossible to say. It depends on the resources you have available. We suggest talking with people who have recently started similar businesses about their experiences.

8. Do I need experience in this line of business?
   Generally, most entrepreneurs have knowledge and experience in the line of business they enter.

9. I'm ready to start a business, but I'm not sure what steps I should take.
   We recommend you meet in person with one of our consultants. Our consultants can talk with you regarding your plans and the steps it will take to implement them. There is no charge for in-district businesses until fiscally sound, to meet with a consultant and you can come back as many times as necessary.

10. Do I need a lawyer or accountant?
    Typically, most entrepreneurs will have to hire an accountant or lawyer to handle the more complex accounting and legal activities. However, you should always learn as much as possible about these fields and how they apply to your business. Remember, this is your business and you are responsible to know, understand, and interpret what your hired professionals are doing on your behalf. 

11. What records should I keep?
    At a minimum, you will need to prepare annual tax returns. If you borrow money, you will need to provide your lender with the information s/he requests. You will want information on what is happening with the business, such as are receivables being collected on a timely basis, is inventory building up, are products being sold for more than their cost, etc. You also will need monthly financial statements, including a balance sheet, an income statement, and a cash flow statement.
    
    If you incorporate, you will need to develop corporate by-laws and hold annual shareholder and directors meetings and record the minutes of the meetings.

12. I am behind in my loan payments. Can you help me?
    Banks sometimes are willing to grant a moratorium on payments for a short period if you ask them in advance and convince them that the problem is of a temporary nature and that you have worked out a solution. You may want to meet with a consultant to discuss your cash flow. We recommend you analyze your cash flow on a monthly basis to identify any problems before they become serious.