In my travels on the Internet, I came upon this short FAQ from Penn State. The information is not state-specific - anyone can benefit from this Q&A.
1. What basic skills do I need to run a business?
The basic skills include a working knowledge of record keeping; financialmanagement; personnel management; market analysis; breakeven analysis; productsor services; federal, state, and local taxes; legal structures; andcommunication skills.
2. What business should I choose?
Usually, the best business for you is the one in which you are most skilled andinterested. As you review your options, you may wish to consult local expertsand businesspersons about the growth potential of various businesses in yourarea. Matching your background with the local market will increase your chanceof success.
3. How long will it take to start a small business?
As long as it takes you to complete your feasibility study, prepare yourbusiness plan, gather your money, buy what you need to buy, and arrange yourbusiness operation affairs. This could take a few weeks or many months. If youhave difficulty with any of these items, the time to learn and solve problemsmust be added.
4. How can I get my business certified as minority- or women-owned?
At the federal level, Congress considers a minority-owned business to be abusiness owned by anyone other than a Caucasian. The business MUST be owned andat least 51 percent controlled by one or more minorities. Women are notconsidered a minority. It is a self-certifying process, and no paperwork needsto be filled out. To learn more about women- or minority-owned businesses,consult the Pennsylvania Bureau of Minority and Women Business Opportunities.
5. What insurance should I have?
An important aspect of your business is a well-planned insurance program. Typesof insurance you should consider are:
property insurance
liability insurance
product liability insurance
automobile insurance
workers' compensation
disability insurance
business interruption insurance
health insurance
life insurance
6. Should I buy a franchised business to start?
There are some definite advantages to starting out with a franchised business.There are many different types of franchises. Some offer fair value for what youpay, and others are rip-offs. Get legal or business counseling advice beforepurchasing a franchise. Approximately 40 percent of present-day retailing isdone through the franchises. There must be some advantages to owning afranchise.
7. Should I buy an existing business to start?
An existing business is already established in the market. It has existing, andhopefully loyal, customers. You avoid the hassle and expense of creatingawareness of and demand for your product or service. The key is making sure thatthe business fits your desires and capabilities. Is it the kind of business youwant? Can you afford it? Can you operate it?
8. I want to start a home-based business. What do I do?
If you are entertaining the idea of having a home-based business, contact yourcity or county planning and zoning department. Inform them of the type ofbusiness that you want to start, and where you will be doing it. They willoutline the laws and regulations that will apply to your scenario. Contact thembefore you start the business, not after.
9. Where should I start?
A great resource to learn more about starting your own business is the FirstStep workshop offered by the SBDC network. This course is offered all acrossPennsylvania.
10. What form of business structure do you recommend for a new business?
Each form—sole proprietorship, partnership, or corporation—has its advantagesand disadvantages. The one you should pick depends on your circumstances,including:
your financial condition
the line of business you're entering
the number of employees
the risk involved
your tax situation
It is best to discuss this issue with a qualified local attorney who will beable to help you pick the structure that will be best for your business.
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