10 Steps to Open for Business

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·                                Main Page: Dashboard
·                                Step 1: Create a Life Plan
·                                Step 2: Choose a Business Model
·                                Step 3: Create a Business Plan
·                                Step 4: Select a Structure
·                                Step 5: Create Key Assets
·                                Step 6: Find the Funding
·                                Step 7: Organize Logistics
·                                Step 8: Find Great People
·                                Step 9: Establish a Brand
·                                Step 10: Market and Sell
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Step 1: Create a Life Plan
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Listen
“It’s important to create a Life Plan first."
59 secs
As we always say, plan your life, then plan your business.
Some of the most successful and happy people we know are entrepreneurs who created a business that’s in perfect synchronicity with what they want out of life. If you do what you love, you’ll work harder, better and more happily.
In this step we will focus on:
· Elements of your Life Plan
· Using your Life Plan
Elements of your Life Plan:
Your Current Status
Think carefully and honestly about where you are now in your life. Consider work, recreation, relationships, finances and anything else that’s important to you. And then jot down some simple, succinct bullet points in each of these categories:
· Quality rating of your life on a scale of 1 through 100, with 100 being the best possible life
· Realities of your life, including responsibilities, funds available to start a business, expenses
· Things that make you happy
· Things that make you unhappy
Your Ideal Life
This is a snapshot of your “ideal” life, in a very brief, bulleted list. And remember, the sky’s the limit, so don’t be afraid of being bold or maybe even a little grandiose. Factor in things likefamily time,hobbies, charity work, early retirement – anything that gets you really excited.
Your Loves: What You Really Like Doing
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Think about the types of things that you love to do, whether at work, at home, or at your local soup kitchen. List these things out briefly. And don‘t worry if some themes are starting to repeat in each section, that just means you have some really focused ideas about what you want in life!
Your Skills & Capabilities: What You Do Well
List the abilities, experience and strengths you can build on to attain that ideal life.
Bear in mind that your skills need not be strictly from your professional life – list skills developed in your personal life as well. It may be a combination of skills that leads you to a startup that’s best suited to fit your needs.
Your Track Record: What You Have Experience Doing
List those accomplishments in your professional and personal life of which you‘re most proud. Pay particular attention to successes you‘ve had that would be helpful in starting a business and managing it successfully.
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Your Ideal Work Style
Whether full-time orpart-time,at-home or on the road, working behind the scenes or interacting with lots of people — understand what your work style priorities are so you candefine the best kind of business for you.
Another way to look at this is, what level of risk do you want to take? You may want a relatively low-pressure first-go at entrepreneurship.
Your Manifesto
This is your personal mission, your values and what drives you forward, all wrapped up into a one-page (maximum) statement. To write this, you should draw on everything you’ve already discovered about yourself in steps 1 through 6, and bring it all together into a clear statement of your principles and priorities.
Our example manifesto
Work as Freedom: We think work is about pursuing our dreams, not for the benefit of some nameless, faceless company, but for ourselves. We believe that owning our own business leads to the liberties and freedoms that the forefathers of our country envisioned for us. We’re free tochoose the kind of business we conduct. We’re free to choose the way we spend our time. We’re free to choose the people with whom we work. We’re free to set our priorities.
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Work as Family: We’ve tried to create a workplace environment whereemployees feel like they’re actually members of a greater family. There’s a sense of common purpose, mutual respect, and deep trust. Everyone should feel important and as though they’re a meaningful member of the collective effort. It’s an environment that empowers people to share in the hard work—and in the benefits.
Work as Fulfillment: We’ve made it a priority to ensure that our work gives us a sense of satisfaction. When we wake up in the morning, we can’t wait to get on the phone, get online, and get our team in gear. The work we do is truly the work we love. For us there’s nothing that turns us on more than facing a challenge and transforming it into an opportunity. There’s nothing more thrilling than seeing a customer use our product. There’s nothing more gratifying than helping someone else turn a dream into a real business. And over time, we’ve found that our fulfillment comes as much from the process of trying to achieve our goals as it does from actually achieving them.
Key Moves to Get You Where You Want to Go
These are simple strategic action items you must develop in order to transform your Life Plan from a self-assessment into an action plan. At this point in life planning, you know where you want to go, what skills you already have, as well as what type of work suits you best. Draw from that information a list of moves you’ll need to make to achieve your ideal life.
Using your Life Plan
Templates
·                      Sample Life Plan (PDF)
·                      Life Plan template (Word)
It’s very important to print your Life Plan and keep it in plain view. You’ll find that its presence—even in your peripheral vision—will constantly remind you of what you want, what’s important, and what to do next.
Ideally, you should also revisit your Life Plan periodically to measure your success and to make adjustments and additions where appropriate. It’s okay if things change over time—life is a fluid and dynamic thing and your Life Plan should be, too!
Use your Life Plan to provide context for strategic decisions you make—including what niche you choose to operate in, what business model you’ll use, whether you’ll have lots of employees or a home-based, one person operation.
Most importantly, your Life Plan will position you to do what you LOVE and that always brings out the best in an entrepreneur.
Step 2: Choosing a Business Model
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Listen
“- after you know your life plan, decide what kind of business model fits your life plan best"
1 min 56 secs
Thanks to technology, there are more business models to choose from than ever before. Today you canstart a business part-time or full-time, at home,online or in a brick-and-mortar commercial location!
The key is tochoose a business model that fits yourLife Plan. This will ensure that you spend the right number of hours each week, take the right level of risk (some models involve more risk than others), are practical in terms of yourfinancial wherewithal, and gain the kind of satisfaction and success you‘re after.
First off, you have to make a key choice: How much time do you want to devote to your business?
When you go for a full-time business model, you leave behind whatever you were doing previously to commit yourself completely to your startup.When you make this leap, expect to spend more hours working than you ever did working for someone else.
Alternatively, you can start up a business part-time. With this model, you adapt your business to time-consuming obligations you already have, such as your day job, parenting responsibilities or any other activities that would keep you from making your startup your primary focus.
Once you’ve determined whether you see yourself as a part-time or full-time entrepreneur, consider our list of business model options.
1.   Home-based
2.   Brick-and-mortar
3.   e-Commerce
4.   eBay
5.   Franchising
6.   Licensing your product
7.   Multi-level marketing
Business Model Options
Home-based Business
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Drawing upon technology, you can create a legitimate and competitive business from home. It’s part of our culture now, accounting for more than half of all businesses.Home-based businesses can be run full-time or part-time, and may or may not be web-based.
Upside
· Less risk and lower startup costs - allows you to test the entrepreneurial waters without having to spend money on real estate and staff.
· Easily scaleable - you can make your home-based business as big or small as you’d like to suit existing commitments, such as parenthood and a day job.
· Outsourcing - a great strategy to keep things simple at home. You can contract with other companies to do yourpublic relations, warehousing, shipping, website management, even manufacturing.
Downside
· Shipping activities and customer traffic at residential properties are restricted by local zoning ordinances (check with your local government for details).
· Working at home can come with lots of distractions and can infringe on your other domestic commitments.
· If foot traffic is necessary in your business, your home may not make the desired impression on customers.
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Brick-and-Mortar
This is a business with a classic physical location outside of the home. It involves a dedicated facility - whether retail, wholesale, service or manufacturing.
Upside
· Gives you an opportunity to work face-to-face with people and become more involved in your community.
· A physical location may attract walk-in traffic to supplement traffic you gain throughmarketing efforts, depending on your type of business.
· Gives you a dedicated space to go to work each day and become mentally and physically immersed in running your business.
Downside
· Higher risk andstartup costs (build-out costs to set up your location, lease/purchase costs)
· Requires a full-time commitment upfront to get the facility ready for business, as well as to hire personnel to staff it.
· If your concept is retail-oriented, you must acquire inventory to merchandize your store.
e-Commerce
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In this model, you don’t have foot traffic in your business, onlytraffic to your website. Yousell your product through your website to consumers or to other businesses.
Upside
· As with a home-based business, this is a lower risk, lower cost business to start. You don’t necessarily need lots ofpersonnel, inventory and facilities.
· You can choose to do it full-time or part-time.
· Easily scaleable – you can make your e-commerce business as big or small as you’d like to suit existing commitments, such as parenthood and a day job.
· You can tap into a national, or even global, customer base through the internet.
Downside
· As with a brick-and-mortar store, shipping, inventory management, and credit card processing can all become headaches if you don’t do them right, particularly if you are a one-person show.
· Over 800 million people access the internet globally, but it’s a challenge to a) get that traffic to come to your site and b) convert them into a customer confident enough to make a purchase
eBay-preneurship
A sub-category of e-commerce, but one big enough to consider on its own,eBay can serve as a location for your online store, and allow you to tap into its huge marketplace.
Upside
· Lower cost, lower risk than starting an independent e-commerce site as there are a great many tools to help eBay sellers get their businesses off the ground (e.g. PayPal to accept payment, a ready-made marketplace, online store templates,market research tools).
· Avoid having to build website traffic from scratch - eBay has a huge following worldwide, so you tap into a vast existing customer base.
Downside
· As with a brick-and-mortar store, shipping, inventory management, and credit card processing can all become headaches if you don’t do them right, particularly if you are a one-person show.
· Even with the guaranteed traffic that eBay offers, you will still face stiff competition from existing sellers who have already staked their claim and built up a strong feedback rating & customer base.
Franchising
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When you choose a franchise business model, you use someone else’s proven business concept as your entrepreneurial roadmap. Typically you pay an upfront fee, as well as a portion of revenues over time, to the franchisor.
Upside
· Lower risk than opening an independent brick-and-mortar business, becausefranchising provides you with a streamlined process to start your business, as well as support formarketing,business plan samples and estimates, assistance with real estate issues, and staff training.
· Provides you with a recognized,established brand to attract customers more quickly.
· To illustrate the lower risk inherent in a franchise, success rates for franchises are higher than non-franchise businesses.
Downside
· You’ve got to be able to pay the upfront franchise fees.
· Franchise guidelines can be strict and limit your ability to get creative with your business.
· Your financial upside is somewhat limited because you must pay your franchisor a cut of your profits.
Resource
To learn more about franchising options, visit theInternational Franchise Association.
Licensing your Product
If you’re working a day job and don’t want to start a business, you can still take advantage of your great product idea bylicensing the product to another company that has the entire infrastructure in place to properly manufacture,market and sell the product .
Upside
· Lower risk because you can work on your product part-time.
· Lower cost because your main expense is production of a prototype and testing the product to make it attractive to potential licensees (rather than the cost involved in setting up an entire business to make, market and sell the product).
· Freedom to move on to the next big business idea - if you do successfully license your product idea, you could receive royalties long after you’ve stopped working on the product!
Downside
· Finding the right licensee takes tenacity and determination, and can take a long time – don’t quit your day job!
· Unless your product gets sold in a significant enough volume by the company to which you license it, the amount of royalties you receive can be low or non-existent.
· It’s extremely difficult to get through the door of big companies to start a negotiation. That’s partly why less than 3% of all patented ideas actually make it to market throughlicensing agreements.
Multi-level Marketing
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Multi-level marketing (MLM) is a marketing and distribution structure. People at the top sell to those below them, who in turn sell to those below them. The higher up you are in this structure, the more money you can make. The challenge with MLM businesses is that people at the top are frequently the winners. The vast majority of people at the bottom end up spending money and time to get involved and end up losing whatever they put in.
If you‘re determined to choose a business with an MLM model, be sure to check with at least a handful of other people who‘ve entered at your level (who you identify on your own, separate from people the MLM promoter refers you to), and see what they have to say. Find out their perspectives on how - and if it’s possible - to be successful.
Upside
· Typically, limited startup costs (a membership or initial inventory commitment).
· Viable home-based business.
· You are provided pre-packaged tools, products and sales techniques.
Downside
· Most people lose money in MLM activities, because they can’t sell the product as effectively as they thought they could.
· Credibility can become an issue, especially if you start treating friends like they’re customers.
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Step 3: Create a Business Plan
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Listen
“Your business plan helps you layout a roadmap for where you want to be..."
2 min 8 secs
In our experience, the process of creating and writing a business plan is as valuable as the end product itself - a document that will provide the priorities, context and sanity you’ll need as you start up your business.
Just remember that the most important audience for a business plan is YOU! You’ll be forced to be accountable to all of the statements, claims, stats and facts inside of it.
You may also use your business plan as a tool to generate interest fromfinanciers,prospective employees andstrategic partners.
We focus on 3 aspects of business planning to consider as you write a business plan:
1.   The "Defining Dozen" questions you must answer
2.   Key components of a business plan
3.   Writing a business plan
Samples
·                       Use these sample business plans for reference.
Hospitality (restaurant)Manufacturing (apparel)Service (public relations)Technology (software)Technology (hardware)* pdf document.Adobe Acrobat Reader required
The "Defining Dozen" questions
To write a good business plan, you have to know the answers to the “Defining Dozen” questions, which we describe in detail in “StartupNation: Open for Business,” our book. Jot down the answers to each of these questions and hang on to them. You might not use every answer in writing your business plan, but they could be helpful when you update your plan as your new business grows.
1.   What’s your business idea? (Read the book excerpt)
2.   How does your idea address a need? (Read the book excerpt)
3.   Whatmodel suits you best? (Read the book excerpt)
4.   What’s so different about what you offer? (Read the book excerpt)
5.   Howbig is the market and how big will you grow? (Read the book excerpt)
6.   What’s your role going to be? (Read the book excerpt)
7.   Who‘s on yourteam? (Read the book excerpt)
8.   How will customers buy from you, and how much will they pay? (Read the book excerpt)
9.   How muchmoney do you need, and how much will you make? (Read the book excerpt)
10.   Where‘s thestartup money coming from? (Read the book excerpt)
11.   How will you measure success? (Read the book excerpt)
12.   What are your key milestones? (Read the book excerpt)
Once you’ve answered these questions, you should be prepared to write the actual business plan document.
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Key components of a business plan:
Executive Summary:
Summarizes the most important information within the pages of your business plan - the people, the idea, the market, thecompetition, the strategy - typically no more than two pages long, the executive summary is usually written last. It takes discipline to keep the summary short, but it‘s a must. (Read the book excerpt)
Business Description:
Details the mission, goals, value proposition, business model, and key assets. After someone reads this section of the plan, they should be able to "get" what you‘re offering with total clarity! (Read the book excerpt)
Market Analysis:
Dives into the needs and wants ofpotential customers in the market, as well as your competition and the percentage of the market you expect to reach. Be sure to include any pertinent market research and competitive analysis you‘ve done - and cite your sources. (Read the book excerpt)
Marketing and Distribution:
Discusses your strategy and timeline for achieving yourmarketing goals and defines how you get what you offer into customers’ hands. Be sure to include any new or novel ideas you have for marketing and distributing your product. (Read the book excerpt)
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Personnel:
Describes themanagement team (existing or future) and any other key personnel that will be instrumental to the business’ success. Includes each team member‘s role and responsibilities, as well as any background information that illustrates why they are highly qualified for their role. (Read the book excerpt)
Exit Strategy:
Puts into words what you see as theultimate destiny of the company, especially as it may affect those who finance your new business, as well as other equity holders in the startup. (Read the book excerpt)
Financials:
Tool
·                       Cash Management Report
Download the Cash Management Report (419K)
Best used with Microsoft Excel 2003. Other software or versions may experience problems.
Distills your strategies and assumptions intohow much they’ll cost and how much money they’ll make you in the course of your new business.
The Financials section should map out your first few years of business and contain:
· Written narrative of key business assumptions
· Income statement
· Balance sheet
· Statement of cash flow
· Cash management report
We’ve developed an important tool to help you forecast and manage the financial side of your startup business - a cash management report. It looks at how cash moves in and out of your business on a monthly basis. By preparing a cash management report before the launch of your business, you’ll be able to determine if you’ll need to raise outside capital, when you’ll need it, and how much will be required. (Read the book excerpt)
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Writing your Business Plan
Your business plan should be concise and neatly formatted. We suggest a Microsoft Word document for the bulk of the business plan, with financial documents as attached or embedded spreadsheets created in Microsoft Excel. Avoid fancy graphics, flowery language or photos. The easier you make it to read for a potential investor or partner, the better.
Tool
·                       Business Planning Software
Ultimate Business Planner software provides the template and pointers you’ll need to create a business plan that’s comprehensive and professional.
If you are the type of person who works better with templates and wizards, there are many business planning software packages available that cost around $100, as well as a few free online business plan templates.
The advantage to using business planning software is that it offers a step-by-step approach to the process (similar to a “wizard”), and can include sample business plans for specific types of businesses (e.g. restaurants, manufacturing, service) to help you outline some of the unique requirements or expenses associated with that particular business. It also formats your business plan for you.
A drawback to using business planning software is that it might not provide you the flexibility to convey some of the uniqueness and creativity of your new business, since it‘s written through the software system.
Step 4: Select a Business Structure
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Listen
“Once you ask yourself the important questions, you can begin to determine what type of business format is right for you."
2 min 35 secs
“To each his own,” as the expression goes. The same holds true for business structures—there’s no universally “right” structure for all businesses.Choosing the best one depends on the specific needs you and your business have. Before setting up your company, it’s important to understand all the options available to you—in particular, you’ll want to evaluate the advantages and disadvantages of each business formation, paying special attention to the tax implications and government formalities.
We will look at four forms of business ownership in this step:
1.   Sole Proprietorships
2.   Partnerships
3.   Corporations
4.   Limited Liability Companies
Forms of Ownership
Visual Aid
·                      Business Structure MatrixDetermine the best structure for your business by comparing each model.
For starters, it’s important to take the time to reviewyour life plan andbusiness plan. What should emerge are answers to questions like:
· Do you wantinvestors as shareholders in your company?
· Do you want to maintain control of the company if you have investors involved?
· Do you anticipate losses in the early stages that can be taken as tax benefits by shareholders?
· Do you want to avoid double taxation?
· Is there a great risk of liability associated withyour specific business?
To help you determine the best structure for your business, we’ve put together an overview of several options. And remember, it’s always best to work closely with an attorney and/or accountant to ensure you make the right choice.
Sole Proprietorship
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Sole proprietorships are a popular choice for many new business owners because so little is needed to set them up. Apart from local business licenses, there are minimal government fees and paperwork.
On the other hand, there are also considerable risks to consider—for example, your personal assets are vulnerable to creditors and other liabilities such as lawsuits. You also don’t get to take advantage of certain tax breaks that are reserved for more formal business structures such as Corporations or Limited Liability Companies.
Most importantly, as a sole proprietorship, your company name is not protected. In other words, there is nothing to prevent another company from incorporating under your business name.
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Partnerships
Similar to sole proprietorships, partnerships are extremely easy to set up and maintain, requiring no government fees or annual state paperwork. On the downside, you and your partners are each held fully responsible for all of your company’s debts. This means if you or one of your partners defaults on a company loan, creditors can go after your personal bank accounts, property holdings and other assets to satisfy the entire loan.
As a partnership, you are also at a disadvantage when it comes to raising funds. For example, you cannot raise capital by selling stock, and private investors may be wary of investing in your company without personal liability protection. Finally, just as with sole proprietorships, your company name is not protected. This means any new or existing business could incorporate using your company name.
Corporations
Corporations are the standard for many businesses in today’s market. The primary reason is that incorporating shields you and the members of your company from personal liability. In other words, if your business hits hard times, creditors cannot go after your personal assets to make up for any company shortfalls.
But protection from personal liability is not the only benefit that comes with incorporating. The corporate business structure also offers significant tax savings, greater business flexibility, company name protection and increased opportunities for raising capital. You can also choose to set up your corporation as either a C-Corp or an S-Corp in order to take advantage of different tax options.
One thing to keep in mind - corporations do require some initial set up fees and a certain amount of regular maintenance. For example, you’ll have to keep up-to-date corporate records as well as file an annual report with the state.
Form your corporation now
C Corporations
If you’re ready for the big time and want to sell shares of stock in your business, consider a C Corporation. All publicly-traded companies are C Corporations which are considered a separate legal entity from the owners (also called the shareholders or stockholders) of the business. Because of this, the shareholders are not responsible for fees, liabilities and losses associated with the business.
The stock money and assets earned by the corporation belong to the corporation. Dividends are distributed to shareholders under the direction of the corporation’s shareholder-elected Board of Directors. Stockholders then pay taxes on the earned dividends, and the corporation also pays taxes on all profits (known as “double taxation”). To become incorporated, you basically fill out the appropriate documents for the state and have all shareholders vote on overall corporate management, stock shares, the name of the company, business industry and other key guidelines.
As a C Corporation you will need to hold annual stockholder meetings and keep meticulous records to avoid legal and accounting problems. In addition, forming a corporation is an intricate process, so we highly recommend that you find a good attorney or consultant to assist you.
S Corporations
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It is possible to avoid the double taxation of a C Corporation by forming an S Corporation. Here, the corporation’s income is divided among all of the shareholders who report the earnings on their individual tax returns. This is a tax-efficient way to structure your business if you expect losses in the short term because the individual shareholders can report the losses on their tax returns rather than paying the double taxation of the C Corporation.
The downside is that to become an S Corporation, you must run the company according to a fiscal calendar year, have less than 35 individual stockholders who are all U.S. residents, and have only one class of stock, in addition to other guidelines.
Limited Liability Companies
For many new entrepreneurs, choosing a business structure comes down to liability protection, tax savings and convenience. LLCs require fewer formalities and less on-going paperwork than corporations while offering the same personal liability protection and tax flexibility. Just as with a corporation, your company name is protected, and you and the other members of your company are shielded from creditors and other company liabilities such as lawsuits. But with an LLC, you only have to keep minimal company records, and there is no limit to the number of members your LLC can maintain.
If you’re looking for more information than provided here, we discuss this subject in detail inStartupNation: Open for Business to ensure that you pick the perfect structure to fit your business.
Form your LLC now
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Step 5: Create Key Business Assets
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Listen
“Creating key assets in your business is all about building value."
2 min 30 secs
It’s a well-known fact in the business world: Your company assets are only as good as your ability to protect them. This is especially true where intellectual property is concerned. Whether it’s your company name, logo, latest invention or best-selling product, it’s imperative that you take certain steps to secure your ownership rights.
We will explore seven types of key assets in this step:
1.   Website Address
2.   Trademarks
3.   Copyrights
4.   Patents
5.   Provisional Applications for Patents
6.   Inventor‘s Logs
7.   Confidentiality Agreements
Types of Key Assets
Website Address (domain name)
More than ever, businesses are turning to the web for bothretail opportunities andonline marketing. Key to establishing a website presence is securing a website domain name for your business. (An example of a domain name is startupnation.com)
There are a number oflow-cost web services that will not only register your domain name, but also set up email and websites for you, complete with e-commerce capabilities.
If you have a unique name for your company or product, be sure to immediately register it. If you discover someone else has already claimed the name you want, don’t be discouraged. Often entrepreneurs allow their domain name registration to expire or are willing to sell their name to you at a reasonable price. Most domain name registration services provide contact information for domain name owners or offer a way to bid on domain names that are up for sale.
Resource
Check for your domain name availability atNetwork Solutions,GoDaddy.com orRegister.com.
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Trademarks
Atrademark is one of the most important business assets you’ll ever own. It’s your brand name, your logo, or any other symbol that distinguishes your company or your company’s goods from those of another manufacturer. By registering your trademark you go on record as the official owner of the mark, which gives you a significant leg up in court should a dispute over your right to use the mark ever arise. This comes in handy, for example, if you discover that another person or company is hurting your business reputation or causing confusion by using your mark to sell similar or cheaper-quality goods.
An owner of an unregistered mark may indicate ownership of a mark with the symbol “TM” for a trademark, or “SM” for a service mark.
Trademark example:
In general, generic marks do not receive trademark protection because they are so general. On the other hand, owners of a registered mark are entitled to use the registration symbol ® in connection with their mark.
Registered trademark example:
Resource
Learn more abouthow to file a trademark.
Register your Trademark now
Copyrights
It’s not uncommon for people to confuse copyrights with trademarks. Whereas trademarks are used to protect intellectual property such as company names,brands, logos and symbols, a copyright grants you exclusive legal rights to your creative work, which can include anything from literary orwebsite content to musical or artistic compositions. In order to receive copyright protection for your work, your creation must be expressed in a tangible form such as a piece of writing or a recording. Once granted, a copyright prevents others from copying, performing or using your work without your permission.
Resource
Learn more abouthow to file a copyright.
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Patents
If you have a bright idea, don’t wait for someone else to turn it into a commercial success. You should quicklyprotect your invention (assuming it is novel) so you can cash in first. The best way to protect your idea is to get a patent on it. A patent is a property right granted by the Government to an inventor “to exclude others from making, using, offering for sale, or selling the invention throughout the United States or importing the invention into the United States” for a limited time in exchange for public disclosure of the invention when the patent is granted. There are three kinds of patents, including: utility patents, design patents, and plant patents.
1.   Utility patents may be granted to anyone who invents a useful process, a machine, an article of manufacture, or a composition of matter.
2.   Design patents may be granted to anyone who invents a new, original, and ornamental design for an article of manufacture.
3.   Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new variety of plants.
A common misconception is that the patent gives its owner the right to make, use, or sell the invention. The patent only gives the owner the ability to exclude others from making, using or selling the invention. In a standard scenario, patents last for twenty years. The twenty years begins on the date that an application for a non-provisional or provisional patent was first filed. In deciding to patent your invention, we always recommendconsulting a patent attorney.
Provisional Applications for Patents
A Provisional Application is a fast and easy way to temporarily protect your invention until you’re ready to commit the time and money required to submit a full patent application. Think of it as a legal placeholder.
Because the application to secure patents is a lengthy and expensive process, the USPTO created a provisional patent which allows you to temporarily protect your invention. The non-provisional application establishes the filing date of your patent application and begins the examination process. A provisional application only establishes your filing date and expires automatically after one year.
You may file a provisional application if you are not ready to enter your application into the regular examination process. A provisional application establishes a filing date at a lower cost for a first patent application filing in the United States.
A Provisional Application makes sure no one else rushes in and claims your invention while you’re busy fine-tuning your design,securing funds, ortesting your idea’s market potential. A provisional application allows the term "Patent Pending" to be applied to your invention which can be useful in warding off any imitators.
But be careful. Provisional patents can come back to bite you later. You might find yourself limited or locked-in to what you describe in it, even though you’ve come up with additional improvements during your year-long provisional period.
If you go this route, we highly recommend that you at least include legitimate “claims,” a key part of a formal patent. Otherwise, you should contact an attorney to patent your invention, or at least help you complete the application .
Resource
Learn more abouthow to file a Provisional Application.
File a Provisional Patent application now
Inventor‘s Logs
The United States Patent and Trademark Office awards a patent to the first person who can prove they’ve invented a new product. An Inventor’s Log Book helps you establish that you were the first to develop your idea by recording the progress of your inventing. You should begin using an inventor’s log the moment you conceive of an idea and continue to keep a detailed record of your activities as you develop your idea into reality.
Creating an Inventor’s Log
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In order to prove that you are the inventor of a specific invention, you should document and memorialize all information in an “inventor’s log”. U.S. Patent requires that you are the inventor of any invention claimed in a patent application and keeping an inventor’s log may prove invaluable should you ever need to substantiate inventorship. A patent log also can be valuable if you need to prove that you were the first to invent a particular invention.
The inventor’s log is literally a diary. The first entry should be posted when you conceive of your idea. This first entry should describe the invention, how you came upon it, the place, the circumstances, and any preliminary conceptual details. As you develop your invention, include in your inventor’s log all engineering and testing data, drawings, research data, as well as any information related to similar products or patents you discover. It’s also important to record the names of anybody to whom you disclose your idea and the details relating to any such disclosures or meetings.
Your log entries should be kept in chronological order with entries posted one after the other on consecutively numbered pages, written in pen, and dated. Entries can take the form of strictly text, or could be drawings, or both. If you finish an entry partway down a page, do not start the next entry on the next page, rather post entries one right after the other in contiguous order. It is also beneficial to have an unbiased witness sign and date an entry if such a witness is conveniently available. It’s important that you select a logbook with pages that cannot be added or subtracted without it being evident.
Should anyone else participate in the development of the invention, it’s very important that you detail the contribution and clarify whether or not this participation resulted in an activity of inventorship or not. In order for a patent to be valid, all inventors must be named on the application.
Keep your notebook or notebooks in a secure location, and regularly photocopy or scan entries to keep a complete second copy of the log should the original get damaged or lost. Keep the copy in a separate location.
Confidentiality Agreements
Template
·                      Confidentiality Agreement (Word)
Use this template as a guide for creating your confidentiality agreement.
Anytime you are considering exposing some of your company’s secrets, whether it is a customer list, business process or financial data that you want to keep out of the hands of the competition, it is critical that you safeguard this information. With aConfidentiality Agreement, also called a Non-Disclosure Agreement or NDA, you can do just that. Typically, there are two types of NDAs: “One-Way” and “Mutual.” When youhire a new employee or offer information to a potential business partner, a one-way NDA provides the protection you need in case the potential employee or business partner decides not to come onboard or engage you in business. When information is being passed both ways, each party should sign a mutual NDA.
Step 6: Find the Funding
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Listen
“The first question you should ask yourself is ‘what type of funding is right for you?‘ "
2 min 26 secs
This is a critical step. You’ve got to find funding for your business butensure that it’s the right kind of funding. Yes, there’s the adage, “beggars can’t be choosers,” but the fact is, you must be selective and smart when seeking money for your startup or it could turn your dream business into a nightmare.
To identify which form of financing is just right for you, think about your long-term personal and business goals and thetype of business you’re planning to launch.
Money comes in many forms, fromtapping credit cards andtaking equity out of your home togovernment grants and high net worth “angel” financing.
We dedicate a whole chapter to this subject inStartupNation: Open for Business to ensure that you understand what we call the “Goldilocks Approach,” a way for you to find the funding that’s the right amount at the right time with only the right “strings” attached.
We will tackle seven ways to fund your business in this step:
· Bootstrapping
· Debt Financing
· Grants
· Friends and Family
· Angel Investors
· Factoring
· Venture Capitalists
Ways to Fund your Business
Bootstrapping
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Look no further than yourself to find the funding you need—perhaps using your savings, your initial revenues, credit cards, equity pulled from your home, etc.
Upside
· You maintain complete financial and operational control over your business.
· No equity-holders to pay off if the company hits it big.
· If you are able to use savings, you won’t have monthly payments to add to your business’ expenses.
Downside
· If the business fails, you may face a lot of personal debt.
· Depending on the source of your personal capital, you may end up paying a high interest rate (if you use a credit card), or you may miss out on earning interest (if you use savings).
· Typically, this form of funding limits the amount of money you have for strategic purposes and the rate of growth of your business can be significantly slowed down as it starves for cash.
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Debt Financing
Debt financing requires that youqualify for a traditional bank loan (not common for raw startups), or that you find a bank that can provide you a loan with a SBA guaranty.
Before youland a loan, you need to understand how to maximize your odds for success in landing a loan. The lending process is inherently a tough one, but it‘s also a system that has been the catalyst of success for many small businesses. In fact, some entrepreneurs would say that their relationship with their banker has been the pivotal ingredient to growth.
Upside
· You don’t have to give up equity, proceeds or control in order to get funded.
· You build a powerful relationship with your banker that can open up additional forms of debt financing you may need down the road.
Downside
· Bank loans typically go to existing small businesses with 2 years of history and credit.
· You must pay interest, and if you don’t keep up with your loan payments, you could find yourself in a tough spot with the bank.
· You may be required to provide personal collateral, such as your home, to obtain the loan.
Resource
·   StartupNation is working with Prosper.com to help StartupNation members access debt financing or lend money to fellow entrepreneurs. Visit theStartupNation group at Prosper anddiscuss the program in our forums.
Grants
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Grants are special programs designed to fuel the innovative fires of small businesses, and typically target specific groups or types of businesses, such as technology businesses, veteran-owned businesses, women-owned businesses and minority-owned businesses.
Upside
· You don’t pay interest – grants are essentially “free money.”
· Potential investors (should you be seeking additional funding) love the “leverage” that grants provide.
Downside
· The competition is stiff for grants, and grant writing (applying for the grants) is an art form, so you may want to find a grant writer to help you.
· How you can use grant funds is strictly defined by the organization that provides them.
Resource
·   Grant resources are availablehere.
·   Or you can find other government grants through each specific department.
·   Find specific grants dealing with thedevelopment of technology.
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Friends and Family
Just like it sounds,raise money from people you know well, either in exchange for equity or as a loan to be repaid.
Upside
· This option has the fewest contractual strings attached, although you should still draw up a contract to protect your friend’s or family member’s investment.
· Funds are typically available quickly.
Downside
· This is usually a limited, one-time source of funding.
· You are spending your friend’s or family member’s money – so do so wisely, and be prepared to deal with the consequences if your business does not succeed.
Resource
To better manage loans between friends and family,Circlelending provides a full range of services for managing financial transactions between private parties.
Angel Investors
Angel investors are individuals who invest in companies at an early stage in exchange for equity and the chance to help guide the company. In contrast, venture capitalists invest as a profession and generally on behalf of other investors.
Generally one is ready to approach angels when they have exhausted their friends and family but are not yet ready to approach venture capitalists for money.
Approach angels if you are looking for large amounts ($25K to $1M) of “smart money”—the people who provide this form of funding have already “made it big” in their own careers and can help guide you to do the same.
Upside
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· Angels invest more than money - they provide mentoring and contacts.
· Angels are patient about their investment.
· There are no monthly payments with this type of financing – angels make their money when youachieve your business‘ exit strategy.
Downside
· Angels are difficult to find.
· Angels deserve regular and thorough reporting, which can take up valuable time.
· You are giving up equity in your company.
Resource
Here‘s adirectory of angel investor networks and organizations that link entrepreneurs to angel investors.
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Factoring
Factoring is where the financial institution (factor) advances the entrepreneur money against proceeds from the entrepreneur‘s outstanding accounts receivables. Factoring firms generally are paid a percentage of the invoice‘s value.
Upside
· Provides funds quickly, when they might not otherwise be available.
· Helps companies with an unsteady and unbalanced cash flow.
Downside
· Factoring requires increased accounting oversight and administration.
· A substantial “cost of money” is involved in factoring. A hefty portion of your receivables will go the way of the factoring firm.
· Your customers are actually paying a factoring company rather than you.
Venture Capitalists
Venture capitalists are individuals or companies with large amounts of capital to invest and expect higher returns.
Use Venture Capitalists if you already have a great track record in your field or as an entrepreneur, and if you have a business concept that will require a lot of money ($250K to $10s of millions) and will have a rapid growth curve.
Upside
· VCs invest smarts and networking, in addition to money.
· VCs typically have more money available if you need it to grow down the road.
Downside
· VCs typically only invest in established companies.
· You must be willing to give up significant control over major decisions for your company.
· You must have a “fast growth” company.
· You must have an aggressive exit strategy to sell your business or do an IPO within 5-7 years.
Step 7: Organize Logistics
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Listen
“You cannot have a successful business if you don‘t pay attention to those basics associated with keeping your business afloat."
1 min 50 secs
Logistics are not the most exciting aspect of starting up a business, but having your logistics in order can mean the difference between success and failure. Having your books in order, your contracts buttoned up, your money safely managed and your downside covered are each critical to your personal and business future. Accountants, lawyers, bankers, insurance agents—the big four—are some of the people that can help you get organized and put you on a path to starting up smart. These service providers will be instrumental as you grow, too.
In addition to the “big four,” there are other service providers that may be vital to your business success. For example, you might need a website developer or a realtor – it just depends on your business model and plan.
Before you start your search for these service providers, it’s important to know what you want to accomplish with each of them, and to set a well-defined budget to meet your goals. Once you’ve hired these professionals, you should work with them to establish clear milestones to reach, a strict timeline for reaching them and a plan for communicating with each other along the way.
Regardless of who you retain, they should be well-versed in assisting entrepreneurs, and they should understand the nature of your industry. Most importantly, you should be able to trust them. Therefore, the best way to find these service providers is through referrals from your friends and business associates.
In this step, we will focus on nine areas of logistics:
1.   Accounting
2.   Legal Services
3.   Insurance
4.   Banking
5.   Information Technology
6.   Website Development
7.   Merchant Banking/e-Commerce
8.   Travel
9.   Real Estate
Accounting
Accountants bring structure and order to your business and help you plan for current and future needs. They can help youchoose a structure for your business, file the paperwork to do so, and advise you ontax-related issues and account management. Accountants can also help you set upfinancial timelines with potential revenue and expenses so that you can accurately project your company‘scash flow.
Once your business is formed, accountants can assist you with ongoing bookkeeping, payroll and financial analysis and management. In fact, many businesses bring in an outside accountant once a week to assist with payroll and bookkeeping.
Like attorneys, accountants generally charge by the hour or on a project basis, depending on the work. The amount charged can vary by geographic location and experience level of the accountant.
Questions to ask a prospective accountant:
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1.   Do you specialize in businesses like mine?
2.   Are you qualified to prepare income tax returns as well as keep my books?
3.   Can you provide me with references from clients similar to me?
4.   Can you explain your fee structure?
5.   Are you a CPA (certified public accountant)?
You’ll also need an accounting software package like Microsoft Office Small Business Accounting 2006 or Quickbooks to track all of the financial transactions in your business on a daily basis. Maintaining your financials in an accounting program helps you stay organized throughout the year, and makes things much easier come tax time when your accountant needs to decipher your books and prepare your tax returns.
Resource
To find an accountant near you check out theCPA Directory.
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Legal Services
Attorneys help you strategize and formalize key relationships with vendors, product sources, financiers and employees. They can also help youform your company, draft contracts andnon-disclosure agreements with vendors or other parties, and comply with a sea of regulations ranging from zoning and securities to environmental and Sarbanes-Oxley. If you are an inventor, a patent attorney is particularly important for you, as they can help you conductpatent searches and file your patent paperwork.
You need to select an attorney who is an expert in the area of law with which you need help. The best way to find an attorney is to ask your friends, accountant, banker, business associates or vendors for recommendations. You can also check with your state or local bar association, or search a directory like the ones atLawyers.com orLegalzoom, but these sources may not have direct experience with the listed attorneys. Therefore, it is important to interview prospective attorneys carefully yourself.
Attorneys generally charge an hourly rate for research, writing and negotiation. In addition, they typically bill for things like filing fees, telephone calls, copies, and work done by other professionals within the firm. Fees depend on the experience of the attorney, the size and geographic location of the law firm, the matter being worked on and the client’s financial situation. Some cases may be worked out on a project fee basis.
If you‘re operating on a tight budget, a great option for some of your legal services is to use a source likeLegalzoom. This online service charges a simple "per project" fee for things such asforming your company, setting up non-disclosure agreements and obtaining copyrights ortrademarks.
Questions to ask a prospective attorney:
1.   Have you handled matters like mine, and can you give me examples?
2.   What is your track record of working with companies of my size, stage and industry?
3.   What will the timeline be for completion of this work?
4.   How will you keep me informed of your progress?
5.   What assurances can you give me that I will be a priority client?
6.   What is a ballpark figure for the total bill, including fees and expenses?
7.   Will you be working on my file, or will an associate work on the file to cut costs? (i.e. can junior attorneys or paralegals in your office handle some of the administrative work at a lower rate?)
8.   Do you have sample legal forms and agreements that I can use for my business?
9.   Would you be willing to work out a more creative fee structure based upon the success of my business, or perhaps accept fee for service?
Resource
To better understand how lawyers charge for their services, visit theAmerican Bar Association.
Insurance
Recommended
·

Mainstreet Insurance is an organization that offers low cost insurance to entrepreneurs and small businesses.
Health insurance is a particularly hot topic these days, and it probably comes as no surprise to hear that costs are increasing exponentially each year. Health insurance costs are, in fact, one of the number one concerns of most small business owners. An economical source to consider for health insurance is your local chamber of commerce. Oftentimes, chambers group their members’ companies together to obtain deep discounts on health insurance, discounts you might not otherwise have access to on your own.
You can also obtain insurance through an agent. Insurance agents make their money through commissions on the products they sell, so there should not be any upfront cost to you. You should seek out several agents, obtain quotes and go with your gut. Insurance agents can counsel you as to what kinds of insurance you will need and the type of coverage available to you, such as health insurance, property insurance, general liability insurance, workers compensation and malpractice insurance.
Questions to ask a prospective insurance agent:
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1.   Are you a licensed agent?
2.   How many companies do you currently represent?
3.   Are you independent or do you work for an insurance brokerage/agency?
4.   How long has your agency been in business and how long have you been with the agency?
5.   If you are independent, how many insurance carriers do you work with?
6.   What kind of insurance do you sell?
7.   Have you worked with businesses like mine before?
8.   What types of value-added services do you provide - employee benefits, retirement planning, wealth management, human resources outsourcing?
9.   Do you offer 24/7 service?
10.   How do you perceive your role in handling claims?
11.   How often will you review my policies to see if better prices or coverage are available?
Resource
For more information on obtaining insurance visit theNational Association of Insurance Commissioners.
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Legal Services
Attorneys help you strategize and formalize key relationships with vendors, product sources, financiers and employees. They can also help youform your company, draft contracts andnon-disclosure agreements with vendors or other parties, and comply with a sea of regulations ranging from zoning and securities to environmental and Sarbanes-Oxley. If you are an inventor, a patent attorney is particularly important for you, as they can help you conductpatent searches and file your patent paperwork.
You need to select an attorney who is an expert in the area of law with which you need help. The best way to find an attorney is to ask your friends, accountant, banker, business associates or vendors for recommendations. You can also check with your state or local bar association, or search a directory like the ones atLawyers.com orLegalzoom, but these sources may not have direct experience with the listed attorneys. Therefore, it is important to interview prospective attorneys carefully yourself.
Attorneys generally charge an hourly rate for research, writing and negotiation. In addition, they typically bill for things like filing fees, telephone calls, copies, and work done by other professionals within the firm. Fees depend on the experience of the attorney, the size and geographic location of the law firm, the matter being worked on and the client’s financial situation. Some cases may be worked out on a project fee basis.
If you‘re operating on a tight budget, a great option for some of your legal services is to use a source likeLegalzoom. This online service charges a simple "per project" fee for things such asforming your company, setting up non-disclosure agreements and obtaining copyrights ortrademarks.
Questions to ask a prospective attorney:
1.   Have you handled matters like mine, and can you give me examples?
2.   What is your track record of working with companies of my size, stage and industry?
3.   What will the timeline be for completion of this work?
4.   How will you keep me informed of your progress?
5.   What assurances can you give me that I will be a priority client?
6.   What is a ballpark figure for the total bill, including fees and expenses?
7.   Will you be working on my file, or will an associate work on the file to cut costs? (i.e. can junior attorneys or paralegals in your office handle some of the administrative work at a lower rate?)
8.   Do you have sample legal forms and agreements that I can use for my business?
9.   Would you be willing to work out a more creative fee structure based upon the success of my business, or perhaps accept fee for service?
Resource
To better understand how lawyers charge for their services, visit theAmerican Bar Association.
Insurance
Recommended
·

Mainstreet Insurance is an organization that offers low cost insurance to entrepreneurs and small businesses.
Health insurance is a particularly hot topic these days, and it probably comes as no surprise to hear that costs are increasing exponentially each year. Health insurance costs are, in fact, one of the number one concerns of most small business owners. An economical source to consider for health insurance is your local chamber of commerce. Oftentimes, chambers group their members’ companies together to obtain deep discounts on health insurance, discounts you might not otherwise have access to on your own.
You can also obtain insurance through an agent. Insurance agents make their money through commissions on the products they sell, so there should not be any upfront cost to you. You should seek out several agents, obtain quotes and go with your gut. Insurance agents can counsel you as to what kinds of insurance you will need and the type of coverage available to you, such as health insurance, property insurance, general liability insurance, workers compensation and malpractice insurance.
Questions to ask a prospective insurance agent:
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1.   Are you a licensed agent?
2.   How many companies do you currently represent?
3.   Are you independent or do you work for an insurance brokerage/agency?
4.   How long has your agency been in business and how long have you been with the agency?
5.   If you are independent, how many insurance carriers do you work with?
6.   What kind of insurance do you sell?
7.   Have you worked with businesses like mine before?
8.   What types of value-added services do you provide - employee benefits, retirement planning, wealth management, human resources outsourcing?
9.   Do you offer 24/7 service?
10.   How do you perceive your role in handling claims?
11.   How often will you review my policies to see if better prices or coverage are available?
Resource
For more information on obtaining insurance visit theNational Association of Insurance Commissioners.
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Website Development
Recommended
·
StartupNation has partnered with ValueWeb to provide discounts to our community.Save on all set-up fees for website hosting.
Your website may be the backbone of your entire company, especially if you are anonline retailer. And there are a wide variety of options for developing your website, so choose carefully. For example, there are online services, likeValueWeb andTemplateMonster, that will provide you with the tools to create your own site using templates, and they‘ll even set up your web hosting for you.
If you need a customized and complex site, you may decide to hire a website designer and programmer. Designers create the look and feel of the site, and design any artwork, while programmers are the ones who build the “back-end” of your site and make it actually function. It’s also possible to find a professional who is both a designer and a programmer, if you prefer to go that route.
Regardless of which path you take, you must first decide what you want in a website.
Here are a few things to consider:
1.   What is the primary purpose of the site? Do you want to sell products (e-commerce)? Do you need to provide information? Will your site contain multimedia elements like music and video? All of the above?
2.   Will you host the site, or do you need someone to host it?
3.   How often will the site need to updated?
4.   Do you want to be able to update the site yourself or pay someone else to update it?
There are content management systems available that let non-technical staff update images, text, and pages on a website.
5.   Who will develop the content for the site?
And finally, if you‘re operating on a tight budget that really doesn‘t allow for hiring a website development firm, you can ask if an individual developer is willing to do the work on a freelance basis.
Questions to ask a prospective website developer:
1.   Do you have experience in designing and programming a site similar to mine?
2.   Do you design and program yourself, or do you outsource some of the work?
3.   What is the timeline for designing and programming my site?
4.   How many designs will you "mock-up" for me to review?
5.   Do you charge by the hour or by the project?
6.   How many corrections am I allowed to make before you charge me for additional work?
7.   Will you also host the site and secure a domain name?
8.   Do you have experience building search-engine friendly websites, and can you provide examples of sites you‘ve designed that rank well in natural search engine results?
9.   Can you point me toward a sample portfolio of websites you have designed?
10.   Can you provide me with your website address so that I can take a look? (You can tell a lot by looking at a web design company‘s site. Would you hire a plumber whose own kitchen sinks is leaking? The same holds true for website developers)
Merchant Banking
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If you are planning to accept credit cards as a form of payment, you must have a merchant banking account. Merchant banking accounts can be tough to come by for startup businesses.
Factors that merchant banks take into consideration:
1.   Whether you already have an established business
2.   The type of product(s) you are offering and the amount of sales volume you expect
3.   Your credit risk, including personal credit history
4.   Whether you have ever applied for bankruptcy
5.   Whether you appear on the Terminated Merchant File List or MATCH file
6.   Whether you have a website and clearly state your return policy
7.   Whether you have ever been convicted of credit card fraud or a related felony
To find a merchant banking service, the best place to start is your current bank. If you qualify for a merchant banking account, you will need to invest in some hardware and software to process transactions. There will also be fees associated with your application, each transaction, each statement and customer support.
Resource
If you don’t qualify for a merchant banking account just yet, and you want to operate an e-commerce business, a service such asPayPal may be right for you. PayPal let‘s you accept credit cards online without a merchant account and works with many of the shopping cart systems available.
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Travel
If you’re starting a business that will have you or your staff traveling frequently to trade shows and client meetings, it’s a good idea to leverage the Internet for discounted travel options. Additionally, setting up frequent traveler reward accounts with your preferred airline, hotel and car rental company will help you accrue points towards free tickets, hotel stays, and maybe even upgrades and amenities.
Going the traditional route of using a travel agent is certainly still an option, and could be the right one if you frequently have complex itineraries and no time to shop for good prices yourself. Searching websites that aggregate discounted prices from a variety of airlines, hotels and car rental companies is also a simple way to get a broad sampling of your options. But some airlines and hotels offer better deals directly at their own websites, and may not even participate in the aggregated travel sites, so be sure to shop around.
Real Estate
If you are opening a brick-and-mortar store or an office, you will, of course, need some real estate. You can choose to lease a property or buy one, but in either case, it’s best to begin with the Downtown Development Authority or the City’s Planning Commission in the community in which you want to locate. These entities may be able to help you identify the perfect location for your business, perhaps even one that carries some attractive tax incentives. Otherwise, you may try working with a commercial real estate agent or developer to identify the right location. A real estate agent or broker will take a commission on the sale price or lease, just as they do in personal real estate transactions.
To find a commercial real estate agent near you, ask for references from other small business owners in your community, or peruse the yellow pages.
Questions to ask a prospective realtor:
1.   Do you have many properties listed in my desired region?
2.   How often will you contact me about available listings?
3.   Do you have a website where I can view properties online?
4.   Do you represent both the buyer and the seller?
5.   What commission level do you charge?
Resource
If you just need a place to hold meetings, or a workstation for a few weeks or months to get your business off the ground, companies likeRegus offer professional offices, meeting rooms and virtual offices.
If you are looking for a permanent location, check out theOffice Directory.
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Travel
If you’re starting a business that will have you or your staff traveling frequently to trade shows and client meetings, it’s a good idea to leverage the Internet for discounted travel options. Additionally, setting up frequent traveler reward accounts with your preferred airline, hotel and car rental company will help you accrue points towards free tickets, hotel stays, and maybe even upgrades and amenities.
Going the traditional route of using a travel agent is certainly still an option, and could be the right one if you frequently have complex itineraries and no time to shop for good prices yourself. Searching websites that aggregate discounted prices from a variety of airlines, hotels and car rental companies is also a simple way to get a broad sampling of your options. But some airlines and hotels offer better deals directly at their own websites, and may not even participate in the aggregated travel sites, so be sure to shop around.
Real Estate
If you are opening a brick-and-mortar store or an office, you will, of course, need some real estate. You can choose to lease a property or buy one, but in either case, it’s best to begin with the Downtown Development Authority or the City’s Planning Commission in the community in which you want to locate. These entities may be able to help you identify the perfect location for your business, perhaps even one that carries some attractive tax incentives. Otherwise, you may try working with a commercial real estate agent or developer to identify the right location. A real estate agent or broker will take a commission on the sale price or lease, just as they do in personal real estate transactions.
To find a commercial real estate agent near you, ask for references from other small business owners in your community, or peruse the yellow pages.
Questions to ask a prospective realtor:
1.   Do you have many properties listed in my desired region?
2.   How often will you contact me about available listings?
3.   Do you have a website where I can view properties online?
4.   Do you represent both the buyer and the seller?
5.   What commission level do you charge?
Resource
If you just need a place to hold meetings, or a workstation for a few weeks or months to get your business off the ground, companies likeRegus offer professional offices, meeting rooms and virtual offices.
If you are looking for a permanent location, check out theOffice Directory.
pages1 |2 |3 |4 | 5<< previous page
Travel
If you’re starting a business that will have you or your staff traveling frequently to trade shows and client meetings, it’s a good idea to leverage the Internet for discounted travel options. Additionally, setting up frequent traveler reward accounts with your preferred airline, hotel and car rental company will help you accrue points towards free tickets, hotel stays, and maybe even upgrades and amenities.
Going the traditional route of using a travel agent is certainly still an option, and could be the right one if you frequently have complex itineraries and no time to shop for good prices yourself. Searching websites that aggregate discounted prices from a variety of airlines, hotels and car rental companies is also a simple way to get a broad sampling of your options. But some airlines and hotels offer better deals directly at their own websites, and may not even participate in the aggregated travel sites, so be sure to shop around.
Real Estate
If you are opening a brick-and-mortar store or an office, you will, of course, need some real estate. You can choose to lease a property or buy one, but in either case, it’s best to begin with the Downtown Development Authority or the City’s Planning Commission in the community in which you want to locate. These entities may be able to help you identify the perfect location for your business, perhaps even one that carries some attractive tax incentives. Otherwise, you may try working with a commercial real estate agent or developer to identify the right location. A real estate agent or broker will take a commission on the sale price or lease, just as they do in personal real estate transactions.
To find a commercial real estate agent near you, ask for references from other small business owners in your community, or peruse the yellow pages.
Questions to ask a prospective realtor:
1.   Do you have many properties listed in my desired region?
2.   How often will you contact me about available listings?
3.   Do you have a website where I can view properties online?
4.   Do you represent both the buyer and the seller?
5.   What commission level do you charge?
Resource
If you just need a place to hold meetings, or a workstation for a few weeks or months to get your business off the ground, companies likeRegus offer professional offices, meeting rooms and virtual offices.
If you are looking for a permanent location, check out theOffice Directory.
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Travel
If you’re starting a business that will have you or your staff traveling frequently to trade shows and client meetings, it’s a good idea to leverage the Internet for discounted travel options. Additionally, setting up frequent traveler reward accounts with your preferred airline, hotel and car rental company will help you accrue points towards free tickets, hotel stays, and maybe even upgrades and amenities.
Going the traditional route of using a travel agent is certainly still an option, and could be the right one if you frequently have complex itineraries and no time to shop for good prices yourself. Searching websites that aggregate discounted prices from a variety of airlines, hotels and car rental companies is also a simple way to get a broad sampling of your options. But some airlines and hotels offer better deals directly at their own websites, and may not even participate in the aggregated travel sites, so be sure to shop around.
Real Estate
If you are opening a brick-and-mortar store or an office, you will, of course, need some real estate. You can choose to lease a property or buy one, but in either case, it’s best to begin with the Downtown Development Authority or the City’s Planning Commission in the community in which you want to locate. These entities may be able to help you identify the perfect location for your business, perhaps even one that carries some attractive tax incentives. Otherwise, you may try working with a commercial real estate agent or developer to identify the right location. A real estate agent or broker will take a commission on the sale price or lease, just as they do in personal real estate transactions.
To find a commercial real estate agent near you, ask for references from other small business owners in your community, or peruse the yellow pages.
Questions to ask a prospective realtor:
1.   Do you have many properties listed in my desired region?
2.   How often will you contact me about available listings?
3.   Do you have a website where I can view properties online?
4.   Do you represent both the buyer and the seller?
5.   What commission level do you charge?
Resource
If you just need a place to hold meetings, or a workstation for a few weeks or months to get your business off the ground, companies likeRegus offer professional offices, meeting rooms and virtual offices.
If you are looking for a permanent location, check out theOffice Directory.
Step 9: Establish a Brand
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Listen
“The most important thing about brand to think about is core values, your brand attributes."
3 min 16 secs
One of the most important assets you can develop for your business is a powerful brand. Brands are not just logos or tag lines. Brands are the culmination of who you are, how you’re different from your competition, and why a buyer should do business with you.
Whether you’re an established company or small start-up, a brand has tremendous impact. A brand instills confidence, creates loyalty, and many times can command a premium price. But most of all a great brand reduces a buyer’s perception of risk and makes the purchase choice easy.
Developing a brand is much more than just deciding on a name or picking some colors. A brand is the sum of all you do. It’s derived from all your touch points with your customers and prospects. Developing a brand requires having a plan that consistently communicates what your company is and does, along with your distinct attributes, image, and personality.
InStartupNation: Open for Business, we introduce the concept of a “marching brand”—a consistent, immediately recognizable mental imprint that delivers a clear and compelling message.
Branding consultant and authorKaren Post, compares this notion to a “brain tattoo”—put there by choice, but which certainly can be removed at any time. That, by the way, is the name of her latest book, Brain Tattoos, Creating Unique Brands that Stick to your Customers’ Minds. Her book delves into many creative ways companies and people can build and leverage their brand.
In this step we look at some of Karen Post‘s recommendations and action items for establishing a super brand:
1.   Draft your brand DNA or essence
2.   Define and relate to your target audience
3.   Choose a brand name
4.   Create a logo
5.   Make a list of all your other touch points
6.   Create a demand for your brand
Recommendations and action items
Draft your Brand DNA or Essence—Purpose, Points of Difference, Personality, Promise
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Save $25 off of your first order withPrintingForLess.com – use the coupon code SUN5 to get your discount.
This is the foundation for everything you do and should guide your business,marketing, and communication decisions. These are your draft brand drivers. As you move through the following process, you may tweak those drivers or add something completely new. But at the end of the day, you should clearly define:
· Your brand purpose: a logical snapshot of what you provide the market.
· Your brand points of difference: things that are truly distinct that your competitors can’t copy. Whilegreat customer service is important, it’s not a point of difference; many of your competitors will claim the same thing. A point of difference can include a visual symbol, story, color scheme, proprietary process or product, historic milestone, physical characteristic, or combination of several of these.
· Your brand personality: a collection of human-like traits and adjectives that best describe your brand.
· Your brand promise: the emotional side of your purpose. If you were a tailor, your purpose would be to make and alter clothes and your promise would be to give people confidence when their clothing fits just right.
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Define and Relate to your Target Audience
This meansunderstanding your audience’s age, sex, ethnicity, income, education level and locale. What motivates them to buy? How do they think? What are their hot buttons? Set up customer profiles, even if it’s just in a simple spreadsheet. If you‘ve done your homework in Step 3 andcreated your business plan, chances are you already have your target audience defined.
Choose a Brand Name
While your name is certainly not everything, it is an important piece to building a lasting brand.
Great brand names:
· Are emotional
· Stick on the brain
· Have personalities
· Have depth to tell stories and communicate with
As soon as you pick a name for your company,secure a domain name that is consistent with your brand name. You should also researchtrademark availability.
Should a name be literal and descriptive or obscure and emotional? There are strong arguments on both sides. Leaning toward the obscure and emotional can lead to very distinctive brands, which the literal and descriptive can speed up the process of communicating your message to your audience. Each case is unique and sometimes brand names get passed down and changing them would take an act of Congress.
Be original
Generic names like Computer Solutions, Performance Printing, or Innovative Technologies will just make you spend more and work harder at building a brand. They don’t have legs and will likely drown in the sea of sameness. Being descriptive - as opposed to being generic - is not a bad thing for names. Given your limited budget, it can actually be a great way to go. Try to be original so your name stands out, so it means something, so you can own it, and so it will be much harder to copy.
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Avoid names that are hard to spell or pronounce
Ask yourself, how will the market receive the name? With supporting context, will the market get it? Will it jive with your strategic positioning of the brand? Are there negative connotations or associations with the name?
Is there a magic, fool-proof method for testing names?
No. In fact, sometimes too much analysis just delays decisions and defeats the whole mission of naming your brand before the next decade. I recommend that you test a little, listen a little to people you respect, listen to your gut feelings, and proceed with a choice.
While the brand name is very important, a brand cannot survive on name alone. The brand name and how the brand is executed are equally vital for a successful and sustained brand life. A great brand name can serve as the anchor to your cause, a symbol to your story, a point of difference in your marketplace, a memory trigger, or just one important part of your branding arsenal.
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Create a Logo
A logo is the visual image of your company that will be used in a variety of applications. When you are considering a design, think simple. Some of the best logos are one color and for a start-up, this cansave you printing expenses.
Test how it photo copies and works in a digital environment. Sample other venues that you may grow into like an outdoor sign, moving vehicle, or promotional items like t-shirts and golf hats.
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The right logo can make a great first impression. Your business card, corporate stationery and website is often where your logo is initially presented to your potential customers and partners.
Whether your logo is full-color or one color, make sure you leave them with the best possible impression through the use of high quality business cards, letterhead and envelopes. The good news is that it won’t cost you an arm and a leg. In fact, business cards are free with the purchase of letterhead and envelopes atPrintingForLess.com.
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Make a List of all your Other Touch Points
Every time you touch a customer or prospect, you should feel your brand breathing. This can include your environment,other promotional activities, and even how your phone is answered. Remember the brand is the sum of you; infuse as many contact areas as possible with your brand essence or DNA .
Create a Demand for your Brand
Your product’s performance, your customer service, follow-through, and your communication add up to a brand experience. Great experiences turn your brand into a magnet for new and repeat business. Buyers will seek you out, tell their friends, and remain loyal. Your brand can make the buyer’s choice easy. That is the power of the brand!
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Make a List of all your Other Touch Points
Every time you touch a customer or prospect, you should feel your brand breathing. This can include your environment,other promotional activities, and even how your phone is answered. Remember the brand is the sum of you; infuse as many contact areas as possible with your brand essence or DNA .
Create a Demand for your Brand
Your product’s performance, your customer service, follow-through, and your communication add up to a brand experience. Great experiences turn your brand into a magnet for new and repeat business. Buyers will seek you out, tell their friends, and remain loyal. Your brand can make the buyer’s choice easy. That is the power of the brand!
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The Right Marketing Materials
Once you have your target audience well defined, you’re in a much better position to know what marketing materials would be appealing and useful to your audience.
There arebasic printed materials you should consider - things like business cards, letterhead and brochures. These kinds of materials are essential for your communication, networking and sales activities.
One way to make the most of the dollars you spend is to create materials that have information that will stay true and accurate for the longest possible period of time. Things change often in a young business, so when possible use “evergreen,” long-lasting information. Include inserts with the latest, greatest info that you print on your own.
Another key todeveloping good marketing materials without breaking the bank is to identify an affordable graphic designer andprinter that will work with you. A local source for this can be a great help. Online sources are completely viable as well in this day and age of broadband internet access.
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When designing your marketing materials remember to keep it simple.
Try to use a simple layout to make sure that your main message (your tagline or your unique selling proposition) doesn‘t get lost. Full color printing gets noticed, but using too many different fonts or placing too much information on the page can cause your message to get lost in the clutter.
If you’d like a free review of your marketing piece, callPrintingForLess.com today and request a Free Technical Review.
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Marketing – a Menu of Methods
There are various types of marketing for you to consider. Below you’ll find an overview of:
· Grassroots Marketing
· Public Relations
· Affiliate Marketing
· Online Marketing
· Traditional Advertising
Grassroots Marketing
This is certainly the most affordable type of marketing. It consists ofusing resources you already have to spread the word about your product or service.
· Distribute your marketing materials (business cards, brochures, flyers) at local businesses, schools, churches and community centers.
· Give great customer service, and then ask customers to spread the word about your company and/or towrite testimonials about their positive experience with your company.
· Participate in local/community events.
· Write an article andpitch it to local papers or niche publications.
· Word-of-mouth – tell friends, family and acquaintances and ask them to tell 5 people. Talk about your business every chance you get.
· Give out free samples of your product.
We give one form ofgrassroots marketing special attention – networking.Networking is a great, low cost way to connect with potential customers and strategic partners and spread the news about your business.
Chambers of commerce are great venues for this—they provide an ecosystem of members who are all looking for business, as well as sources of products and services.
Joining a chamber is extremely important to expanding your network, while at the same time, as a member you may be entitled to great discounts on services you might need, such as office supplies, telecommunications, health insurance, etc.
Resource
Chamber of Commerce directory
Find your local area chamber of commerce
Trade associations for your particular industry are another great networking resource you should consider. Oftentimes these associations hold events, offer industry-specific education and message boards online, and provide an opportunity for members to list their businesses on their website.
Resource
TheASAE Gateway to Associations Directory is a great resource for locating associations near you and is updated daily.
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Public Relations
Watch TV? Do much reading? Listen to talk radio? The news that you experience comes from a combination of reporters uncovering their own story themes and pitches sent to reporters by outside sources. As a new entrepreneur with a great business fresh on the scene, you may have a highly appealing story that reporters are interested in learning and writing about. And if they do write about your business, it can be a homerun opportunity for you.
We often refer to “the power of PR,” a phenomenal way to generate awareness about what you’re up to--virtually for free--that will touch potentially thousands or millions of people. Many entrepreneurs say their PR efforts have benefited them in ways they could never have afforded to pay for. Doesn’t that sound tempting?
The question for you should be whether you choose to do your PR in-house or, instead, use a professional likeRembrandt Communications, the firm StartupNation uses. There are pros and cons to both strategies. As for doing it in-house:
Pros of in-house PR
· Your passion is contagious and gets the reporter’s attention
· You control the message more closely
Cons of in-house PR
· You’re an amateur and your pitch to reporters may seem that way
· You don’t have the preexisting media contacts that a professional has
Affiliate Marketing
Affiliate marketing involves hooking up with other businesses or organizations that share a similar target audience to yours. Withaffiliate marketing, you work out a mutually beneficial relationship through which you swap advertising or share revenues with the other organization, and reach more people with your marketing message.
Resource
·  LinkShare provides the technology to track, manage, and analyze the performance of sales, marketing, and business development initiatives.
·  Commission Junction provides advanced performance-based marketing solutions that help marketers increase online leads and sales, by facilitating strategic relationships between advertisers and publishers.
·  The Kolimbo Open Network offers programs for affiliates seeking additional revenue as well as merchants looking to promote their site across its network of affiliates.
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Online Marketing
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StartupNation has partnered with ValueWeb to provde discounts to our community.Save on all set-up fees for website hosting.
These days a website is essential. And depending upon your niche and your objectives, it can be a major part of your marketing initiatives.Creating a website can be made fairly simple by working with a company that specializes in helping small businesses create their web presence, such asAffinity.
But how about getting the word out about your site, and getting visitors to come back again and again? It‘s important tofill your website with content that‘s effective. It’s what you say and how you say it that makes all the difference online. The content (words) on your site must be crisp and intelligent. What you say should grab a visitor’s attention, establish credibility, pique their interest and motivate them to action.
There are a number of ways to promote your business online, here’s just a sample of the most popular methods:
· Online display advertising – the “granddaddy” of online advertising, involving the purchase of display space on a popular website. Everyone has seen ‘banner’ ads at the top of websites – despite reports of their demise, display ads are still popular for their reach and for the branding effectiveness of graphical ads.
· Search engine marketing – this catch-all has two primary marketing tools under its umbrella; search engine advertising and search engine optimization. Both involve driving traffic from the hundreds of millions of eyeballs that scan search results on Google, Yahoo, MSN and other search engines, but the approach is drastically different – be sure you understand the distinctions.
· Email marketing – along with online display ads, email marketing got a bad rap, mostly thanks to spammers clogging your inbox with offers to refinance your mortgage. But with new rules and regulations, and much stricter controls on spam, getting your message out through email is enjoying a revival. Email can be an outstanding customer retention tool, so you’ll want it to be part of your online marketing mix.
Resource
For help on Search Engine Advertising, check outYahoo’s Search Marketing, orGoogle AdWords.
Traditional Advertising
Traditional paid advertising includes the things so many of us are already familiar with (and encounter so often in everyday life). Think of things like billboards,magazine and newspaper ads, broadcast spots such as those on TV and radio, and evendirect mail pieces that seem to clog your mailbox each day.
In the previous section we discussed online display advertising, which is often paid for on a “cost-per-thousand” impressions (“CPM”) basis. In other words, the people selling you the advertising space price their opportunity based on the specific reach of that advertising. The same pricing model applies to traditional advertising methods, where the reach of the advertising medium – whether it’s the size of a subscription list, listenership, or viewership – will determine the rate you’ll pay to reach that audience.
Advertising can do the following:
· Attract new customers, prospects and leads
· Encourage existing customers to spend more on your product or service
· Build credibility, establish and maintainyour “brand” or unique business identity, and enhance your reputation
· Inform or remind customers and prospects of the benefits your business has to offer
· Promote your business to customers, investors or others and slowly build sales
Should your business warrant advertising (and your pocketbook allow for it), it’s important to create an advertising plan and budget in advance.
Points to consider:
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· Who is in your target market and what mediums are grabbing their attention?
· When obtaining rate card information, be sure to understand how many of your ad impressions are reaching your target audience vs. those who are not in your target audience. And ALWAYS negotiate published rates.
· “Frequency! Frequency! Frequency!” Is the name of the game.  That’s why it’s important to create a comprehensive six-month or year-long plan before you even take out your first ad, so you know you can afford to advertise on a frequent basis.  Signing up for a frequency rate will allow you to spend less per ad, if you do this from the beginning.
· If you are advertising in print publications, always ask your sales rep for the best positioning. A right-hand page, for example, may get many more viewings than a left-hand page.
· Create advertisements that generate a response you can measure.  Examples include coupons which are redeemed in stores or include a specific web address that customers visit for redemption.
· Make sure your advertisements stay true to your brand and are consistent with all other marketing mediums.
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No business is better than repeat business. Repeat customers can also be a great source of referrals. If your company has an extensive list of contacts, newsletters or direct mail may be goldmines you have yet to tap into. Use them to communicate news about your company, products and special offers.