Do You Want to Start Your Own Business?

Starting your own business may be a dream whose time has come. Careful planning can help you avoid pitfalls that cause many small businesses to fail. At NewBridge Bank, we want to help your small business grow and succeed.

Talk to your NewBridge Bank financial consultant to get the best advice about starting or managing your small business.

Following is a guide to help you chart your path for success in the small business world:
1. Identify your reasons for going into business. Ask yourself if you have the personal characteristics and skills-such as leadership or self-discipline-to be successful. Are you and/or your family willing to endure the physical, emotional and financial strain that you will encounter?

2. Find your niche and determine the feasibility of your idea before you invest time, money and effort.

3. Analyze your market to determine the demand for your product or service. Determine who your customers will be.

4. Prepare a written business plan. A good business plan will help you obtain financing, arrange strategic alliances, attract key employees and boost your confidence.

5. Decide on a form of ownership. The most common forms are sole proprietorship, general partnership, limited partnership, "C" corporation, "S" corporation, and Limited Liability Company. The tax and legal implications differ for each form. Talk to experts-attorney and a CPA can give you advice on the details.

6. Financial resources available to small businesses can vary depending on whether you are starting a new business or purchasing an existing one. Starting a business may take $10,000 or less-more than 41 percent of the fastest growing private companies in 2002 started with just $10,000.

7. Banks are one of the top places for small businesses to borrow money. More than 62 percent of the INC 500 borrowed cash from a bank when they wanted to expand their operation.

8. Don't use your personal accounts for business transactions. Instead, open a business checking account and get to know your banker.

9. Obtain a business license for the areas in which you are conducting business. Also, check on zoning approval, occupancy permits and sign permits. Find out about other licensing or registration that may be required for your particular business; for example, OSHA, Health Department, hazardous materials, etc.

10. Obtain a Federal ID number. You may use your social security number if you have a sole proprietorship with no employees. You may also need an employer withholding number if you have employees and a retail license if you will be selling merchandise.

11. Consult an insurance agent for information on liability insurance, workers' compensation, casualty insurance, etc.

12. Plan to work hard. Business owners find themselves working longer and harder than they did as employees-especially in the beginning. Make sure that you are in a business that you love, and your chances for success will be even greater.