Starting a Business Checklist:
- Prepare a comprehensive business plan
- Anyone who extends credit to you (lenders, suppliers, equipment, and property lessons) will ask to see it.
- Estimate your start-up costs. These include:Have a record system that will keep track of all of your income and expenses, inventory, payroll records and tax reports. Have an accountant who will help you with your financial statements.
- Rent, supplies, utilities, insurance, inventory, licesnse and permit fees, legal and professional fees, equipment, decorating costs, advertising and promotional costs, salaries and wages, and adequate cash reserves.
- Insure your business. Some basic types of insurance are:Know how to price the goods and services that you sell.
- Property insurance, business interruption, key person, liability, workers' compensation, health insurance, product liability, fidelity and surety bonds.
- Identify your suppliers. Have firm agreements with them in place before you start.
- Terms, prices, ordering policies, delivery schedules.
- Establish customer payment policies. This includes:
- Check cashing, payment terms, extending credit and use of credit cards.
- Set up a company bank account that is separate from your personal bank account.
- Have job descriptions and work policies in place for all employees. Determine benefit packages keeping in mind things such as:
- Payroll tax, health and/or life insurance, vacation, sick leave, and training.
- Determine the type of business organization for your company. Register your business with the Secretary of State's Office. If you are a corporation, file with the Secretary of State.
- Proprietorship, partnership, or corporation.
- Minnesota businesses will need one or more tax identification numbers. These include:Businesses engaged in making taxable retail sales or providing taxable services will need a Minnesota Sales and Use Tax Permit.
- Federal Employer Identification Number, the Minnesota Taxpayer Identification Number, the Minnesota Unemployment Compensation Employer Identification Number.
- The state, counties, and municipalities of Minnesota may require one or more licenses for your business. For the state, check with the Minnesota Small Business Assistance Office. For the County and City, check with your local government offices about permits and codes.
- Make sure that the location you choose for your business is properly zoned for your type of business.