Business Types

• Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business.

• Partnership: A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of the debts incurred by the partnership. There are three typical classifications of partnerships: general partnerships, limited partnerships, and limited liability partnerships.

• Corporation: A business corporation is a for-profit, limited liability entity that has a separate legal personality from its members. A corporation is owned by multiple shareholders and is overseen by board of directors, which hires the business's managerial staff.

• Cooperative: Often referred to as a "co-op business" or "co-op", a cooperative is a for-profit, limited liability entity that differs from a corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.

Financial

ACCOUNTING

Hiring Bookkeepers or Accountants

Accountants are useful not only in keeping track of your finances but also an excellent reference.

Some accountants have knowledge as to where you benefit the most in situations or what your limitations are

Can clarify questions about business expenses

Accountants very important because an audit is required in order to qualify for government funding

For Example, the Section 179 expensing election allows a $24,000 deduction in cost of vehicles weighing over 6,000 pounds for business use.

Balance accounts and put books in order on a regular basis or hire a bookkeeper instead of hiring a CPA

For taxes, hire enrolled agents who are income-tax specialist licensed to prepare returns and filings

Enrolled Agents have to pass examinations given by the IRS

Charge from $50-$150 an hour

Accountants are more useful for looking over the accounting as well as for supplying information where computer programs can take care of the regular daily accounting such as accounts payable, accounts receivable, and payroll. Programs like QuickBooks and Quicken are fairly easy to use and easy to keep records with.

INSURANCE

Another important business aspect is insurance protection. Risks over which you have no control should be insured against, however, losses which would be trivial if they did occur should not be insured nor should you pay for protection when the premium is a significant proportion of the value of the property being insured. Major types of insurance include: fire, general liability, automobile liability, automobile physical damage, workers' comp, crime, business interruption, glass, group life (health and disability)

Business Insurance:

· Business Owner's Policy

Provides coverage for property (fire, wind, theft, etc.), liability (injury of someone in your business or by your product), business interruption, and, in some cases, workers' compensation

• General Liability Insurance

Coverage of injury to another person or damage to a person's property for which you are legally responsible

• Property Insurance

Provides coverage to business for loss or damage to your property (fire/vandalism/etc)

Building - Covers damage to the building (fire/lightining/wind/vandalism/snow on roof)

Personal - Covers damage to property inside the building

• Professional Liability Insurance

Protects you financially in the case of a claim against you for negligence, errors, omissions, or wrongful acts in the performance of duties

TAXES & COST ESTIMATES

The exact taxes and cost estimates are extremely difficult to determine at this time since no precise information is known about how this product would actually be made and therefore, the cost of manufacturing is difficult to determine. Taxes would be most likely dealt with through an accountant which can be seen in the Accounting section.

Real Estate

SPACE NEEDS

Cytogenics will be a home based business to begin with and since the manufacturing will be outsourced, the space requirements will be insignificant. There is no great disadvantage to outsourcing the manufacturing and this also requires much less startup cost.

• Property zoned-residential, commercial, industrial or agricultural. Specific limitations for those
• Restrictions on vehicular traffic or parking
• Restrictions on the use of outdoor signs
• Restrictions on having employees and customers on the premises
• Sell items on the premises
• Restrictions on indoor or outdoor storage of materials

Many home based businesses ignore zoning laws

Find out about licenses and permits

Call local municipal building and see ordinances that apply to home occupations

Minicipalities have websites with their ordinances and sometimes entire code book

Call from phone lines outside your house

Special Exception Hearing

• If homeowners' association doesn't allow your type of business
• businesses that don't produce traffic, outside visitors, or outside evidence usually have a chance
• Cost is about $5,000
• If a variance is obtained, house becomes a commercial site
• Subject to fire inspections without a search warrant
• fire marshal can fine for extension cords, lack of fireproof doors & curtains
• Require instillation of fire doors between work area and rest of the house
• Required to comply with OSHA and ADA regulations
• Variance can be rescinded at any time without notice if a neighbor complains
• Check American Association of Home-Based Businesses

• lead to resources and assist in establishing businesses
• information on local zoning laws & other restrictions

Complete Business Plan

This is an outline of a complete business plan:

Summary

Business Concept
Current situation
Key success factors
Financial situation/needs

Vision

Vision statement
Milestones

Market Analysis

The overall market
Changes in the market
Market segments
Target market and customers
Customer characteristics
Customer needs
Customer buying decisions

Competitive Analysis

Industry overview
Nature of competition
Changes in the industry
Primary competitors
Competitive products/services
Opportunities
Threats and risks

Strategy

Key competitive capabilities
Key competitive weaknesses
Strategy
Implementing strategy

Products/Services

Product/service description
Positioning of products/services
Competitive evaluation of products/services
Future products/services

Marketing and sales

Marketing strategy
Sales tactics
Advertising
Promotions/incentives
Publicity
Trade shows

Operations

Key personnel
Organizational structure
Human resources plan
Product/service delivery
Customer service/support
Facilities

Creating the financials of the business plan

Assumptions and Comments
Starting Balance Sheet
Profit and Loss Projection
Cash Flow Projection
Balance Sheet Projection
Ratio's and Analysis

ADVERTISING

There are numerous way to convey your message to your target audience

• Trade shows
• Good visibility of items, allows sampling of the product (very important), direct advertising to people interested in your product
• Bodybuilding competitions
• Wear T-shirts, have visible markings of your company/product. Cheap and excellent publicity
• Sponsor a Bodybuilder
• Cheap method and very persuasive
• Magazines & TV
• Most expensive but possibly the most effective in magazines

• Choose a topic which best describes the advantages of your product
• Make your advertisement informative and easy to understand
• Expect to be compared to your competitors and focus on why your product is better
• Make sure it is professional

PUBLIC RELATIONS

Public Relations can be an extremely cost effective method to get excellent publicity. With increasing visibility to the public, your company brings news of your company to the world and you company profile increases as well as client and prospect levels. Important aspects of public relations include:

• Press kit
• Press Releases
• Publicity Campaigns

distribution

• Arrangement between you and the manufacturer or distributor of the product which you are selling in which the manufacturer ships the product to the customers.
• Customer orders the product and pays
• You send an e-mail with the customer's order and shipping information to the distributor
• The distributor packs' the order, puts your shipping label on the package and mails it
• Advantages:
• No worry of shipping the product yourself
• Saves the cost of building your own inventory
• No leftovers - if item becomes obsolete you aren't stuck with extra inventory
• Add new products instantly

sales projections

Sales projections are difficult to determine. It is expected that, obviously, there will not be many sales at first. However, as more contacts are made and more word of mouth and advertising is seen, the sales should increase exponentially at first and then possibly level off or increase at a much slower rate.

MARKET RESEARCH

Market research is the analysis of factors outside the company that affect the business like your customers, competitors, and industry. It gives you the information you need to make smart decisions about your business, so your revenue increases. Market research helps to

• target your marketing campaigns
• identify opportunities in the marketplace
• identify your customers' specific needs
• evaluate your success with measurable data