When one is thinking of starting a business - there is certainly significant planning and preparation that should be done. In this section of our business start-up guide, we will discuss the following aspects of pre-action plannign and preparation:

» Planning Your Business
     » Resources for Planning
» Research
» Structure
» Written Business Plan

Before launching your business, you should ask yourself the following very direct questions to determine whether you’re likely to thrive as a business owner.

The Big Questions: Is Entrepreneurship For You?

In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business.

Carefully consider each of the following questions:

Are you a self-starter?
It will be entirely up to you to develop projects, organize your time, and follow through on details.

How well do you get along with different personalities?
Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?

How good are you at making decisions?
Small business owners are required to make decisions constantly - often quickly, independently, and under pressure.

Do you have the physical and emotional stamina to run a business?
Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-¬hour work days every week?

How well do you plan and organize?
Research indicates that poor planning is responsible for most business failures. Good organization of financials, inventory, schedules, and production ¬ can help you avoid many pitfalls.

Is your drive strong enough?
Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.

How will the business affect your family?
The first few years of business start¬up can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.

Do you have and can you raise enough capital?
Even a shoestring operation requires money to get started before your incoming revenue exceeds your outgoing expenses. You’ll need to assess carefully how much is required.

What are your reasons for starting your own business?
Self-management?
Financial independence?
Creative freedom?
Full use of personal skills and knowledge?
Other?

Is this business right for you?
What do I like to do with my time?
What technical skills have I learned or developed?
What do others say I am good at?
Will I have the support of my family?
How much time do I have to run a successful business?
Do I have any hobbies or interests that are marketable?

Maximize Probability of Success
Success in business is never automatic, and is based on much more than luck. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees. Starting a small business involves risk. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year. Careful preparation is essential to making it through the critical first twelve months.

In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

1. Lack of experience
2. Insufficient capital (money)
3. Poor location
4. Poor inventory management
5. Over-investment in fixed assets
6. Poor credit arrangements
7. Personal use of business funds
8. Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:

1. Competition
2. Low sales

For the right person, the advantages of business ownership far outweigh the disadvantages.

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Please check the links below which are good informative resources for the planning and preparation phase of setting up a business:

Business Planning Checklist: app1.sba.gov/survey/checklist
U.S. Government help: www.business.gov
SBA Guide: sba.gov/starting_business/planning/basic.html

Small Business Committee
The Greater Naples Chamber of Commerce fully recognizes the important impact that small businesses have in the community. With valuable guidance and assistance from the active and involved volunteer members of the Small Business Committee, The Chamber continues to develop programs in support of its goal to establish The Greater Naples Chamber of Commerce as the community's most dynamic and pre-eminent small business advocate.

The Committee also endeavors to make The Chamber an informational and assistance resource for new businesses, including services such as opportunity identification, location analysis, legal requirements, and federal, state, county, and city requirements. And the Committee further works to provide outreach sources for business planning, marketing, and financing.

Through its newly formed Small Business Education Program, the Small Business Committee is dedicated to improving the business environment in the Greater Naples Area through a series of seminars, workshops, and roundtables introducing fresh, innovative business views; promoting original and introspective solutions and approaches to business challengers; and, providing the essential components to help small businesses succeed.

The program consists of the following primary components:

1. Success Series Seminars
2. Business Management Workshops
3. Entrepreneur Roundtables

A strong, supportive element for the overall Business Education Program comes via individual small business counseling sessions, led by Suzanne Specht, with Florida Gulf Coast University's Small Business Development Center . Suzanne is available the 2nd and 4th Wednesdays of the month, These sessions are held at The Chamber's Administrative Offices, 2390 Tamiami Trail North, Suite 210. Appointments are necessary and are available by contacting the Naples Chamber at 239-262-6376.

More information about small business seminars, workshops, roundtables, and counseling is available by contacting Ernesto Mandible, Account Executive and liaison for the Small Business Committee at (239) 403-2920 or by email at ernesto@napleschamber.org.

Service Corps Of Retired Executives (SCORE)
A national, non-profit organization with over 10,500 members which began in 1964. Score is a group of working and retired business executives who donate their time assisting U.S. citizens and resident aliens in starting-up new businesses or providing business counseling for existing businesses.

The Naples/Collier Chapter of SCORE (Chapter 573) has over 40 such volunteer consultants locally to assist you by mentoring on a wide range of business issues, providing free business counseling to entrepreneurs. This mentoring or counseling can be in the form of assistance in setting up a new business, legal requirements, federal/state/county requirements, business plan advice and review, marketing and financing. It can also be in the form of business mentoring for established businesses.

SCORE Chapter 573 has an online Business Resource Library for people that prefer to ‘surf’ over meeting directly with a counselor. You are welcome to view their progress on that library at: www.scorenaples.org/library

Free workshops on such topics as marketing, starting a business, creating a business plan, and using your computer to help your business are also available. You can see their workshops at www.scorenaples.org/workshop.htm

Chapter 573 is a certified Technical Assistance center for the Community Express Loan program which allows a bank to speed up loans up to $50K for businesses. These loans are backed by the SBA. Also offered are presentations about SCORE or on business topics for groups and organizations. Call (239) 430-0081, visit www.scorenaples.org, or send an email to score@scorenaples.org to request an appointment.

FGCU Small Business Development Center (SBDC)
The SBDC is designed to deliver up-to-date counseling, training and technical assistance in all aspects of small business management. SBDC services include, but are not limited to, assisting small business with financial, marketing, production, organization, engineering, and technical problems, and feasibility studies. Special SBDC programs and economic development activities include international trade assistance, technical assistance, procurement assistance, venture-capital formation, loan package information and rural development. The SBDC also holds numerous business seminars thru the region. Free counseling services are available.

For more information call (239) 225-4217, visit their website at http://cli.fgcu.edu/sbdc, or send an email to sspecht@fgcu.edu.

Small Business Administration (SBA)
The mission of the SBA is to maintain and strengthen the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters. On their website, www.sba.gov, is information on most small business topics, plus how-to guides and examples of business plans, financial plans, etc.

The closest SBA office is located in Miami and offers classes and seminars on various small business topics, including how to start a business, financing a business, business planning, and accounting, among others. Call (305) 536-5521 or visit www.sba.gov/fl/south.

Legal Counsel
Good legal council is very important in business start-up and operation. The advice of legal council will help you decide what type of business structure you should have (C or S Corporation, Sole-Proprietorship, LLC, Partnership), help you decide insurance issues, and help you foresee any legal problems you may otherwise be unaware of.

The Collier County Bar Association has a Lawyer Referral Service that can help fit you with the type of lawyer you need. The referral cost is $50 and entitles the caller to a free 30 minute initial consultation with an attorney. Call (239) 774-8711, visit www.colliercountybar.org/programs.htm, or email ccba@earthlink.net

For business assistance and legal contacts please click here.

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How do you know if your business idea is viable? Is there enough demand for your product and service to sustain a profitable business? How tough is competition? Researching your market is the only way to know.

Know Your Market
Before entering any market, you must understand its unique realities. This means learning the who, what, where, and how much of your prospects, your competitors, and your target market. This basic understanding of your industry will underline your written business plan.

The internet is a great place to start. Search for research that’s been conducted on your market, industry, and type of business. Chances are, you can gather enough information browsing to give you a basic understanding without having to purchase entire research studies.

You can learn about your market on your own or with the help of research tools. However you proceed, make sure you have tangible, measurable data you can use to evaluate the potential of your business concept.

Hands-on knowledge is best obtained from experienced professionals. Talk to as many experienced advisors as you can: industry colleagues (whom you can trust), bankers, accountants, marketing specialists, business counselors, or attorneys who specialize in business.

You should seriously conduct your own basic survey. Web tools like Zoomerang make this easy and affordable. The results you get may prevent you from making some painful and expensive mistakes — and perhaps for launching the wrong business to the wrong market at the wrong time.

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This is an important decision in the life of your business. We recommended that you seek legal counsel during this process. Be sure to read the section in chapter two, “Legal Procedures of Starting a Small Business”, where there is a description of business structures and a guide to selecting the right one for your business. Take time to think carefully about which is best for your venture.

Lawyer Referral Service, Collier County Bar Association, (239) 774-8711, www.colliercountybar.org

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The process of developing a written business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success. A written plan not only helps you to visualize and understand all the aspects of your venture, but is almost always needed to receive capital funding from lenders/investors. Business plans for small a start-up need not be more than 5 to 10 pages.

Customizing Your Business Plan
Tailor your plan to the interests of your prospective investors/lenders. Show wha’s in it for them. If you are presenting this plan to a lender, show that:

1. You have invested an appropriate amount of money yourself (at least 25% or 50% of the amount you are asking from the creditor.) This shows that you have an equal stake in the venture and will have an incentive to protect the creditor’s investment as well.
2. You are creditworthy, shown by your credit report, work history and letters of recommendation.
3. You have sufficient experience and training to run your business successfully.
4. Your loan proposal and business plan demonstrate your ability to start and run a successful business.
5. Your business has sufficient cash flow to sustain itself and make monthly loan payments.

Review Your Plan with a Trusted Advisor
Once you have completed your business plan, review it with a knowledgeable friend or business associate or a Service Corps of Retired Executives (SCORE) or Small Business Development Center (SBDC) counselor. (See SCORE and SBDC listings in this guide). When you feel comfortable with the final plan, make an appointment to review and discuss it with your lender. The business plan is a flexible document that should change as your business grows.