Opening a new business in the Ukiah area? Relocating? Revisioning your business? The Greater Ukiah Chamber of Commerce is ready to help you achieve your goals and take your business to the next level. The Chamber has a wide range of programs and services that will help you attract more customers, expand your business base, reduce your operating costs and assist with connections to further your business goals.
The Chamber has prepared the following information to help assist you in opening a new business or relocate an existing business in the Ukiah area.
Notice to readers: Great care has been taken to ensure the accuracy and completeness of the information provided in this section. Nonetheless, readers are caution to contact city and county governments to confirm the requirements and to determine if other requirements may affect their business. The Greater Ukiah Chamber of Commerce assumes no liability for the correctness of the contents of this publication.
Starting a New Business
There are two major areas that are critical to the success of a business. The first is planning. You need to carefully evaluate start-up costs, markets, distribution strategies, and financing options. The second area is knowing where to get help. You don't need to be an expert on every aspect of business operation, but you do need to know how to find the answers. We hope this section will help you determine what help you need in what areas of your business. You can then go to the Local Business Resources section to find the help you need.
Some Basic Questions to Consider:
Have you worked in a business similar to this one?
Have you any special training in this field?
Do you want to own your own business seriously enough to dedicate long hours without knowing how much money you will earn?
Does your family go along with the idea?
Have you found out whether your type of business is already in Ukiah and are they successful?
Is it a competitive area or a unique niche?
Is there a demand for this service or product?
Is your business location sensitive?
Have you found a good location for your business?
Can you lease a space or do you have to build ?
Do you know how much money you will need to start this business?
How much of your own money can you put into the business?
How long will that money carry the new business?
What do you do for income while starting the new business?
Will your suppliers allow you credit? Or even help finance the business?
Have you estimated a net income you'll expect per year? What gross revenues will that require?
Can you live on less than your current salary so you can help your business grow?
Have you discussed the idea with your banker, accountant, potential investors?
Have you checked with the city or county planning & zoning?
Do you know what licenses or permits you will need?
What laws govern this type of business?
Have you determined a record keeping system that will track your income & expenses?
Have you figured out how to keep your payroll records and take care of tax reports and payments?
Have you determined the appropriate legal structure for your business?
Tips for Small Business Success
Make an accurate assessment of your professional and personal skills
Consult professionals to fill in the gaps in your skills
Note: These may not be all the requirements necessary to start your business. For a more comprehensive checklist visit the "Starting a Business" Checklist on the Secretary of State's website at: http://www.ss.ca.gov/business/resources.htm
Developing a Business Plan
Business Plan Outline
Statement of Purpose / Mission Statement
Executive Summary
Goals and Objectives
Market Strategy, Strengths in products or service
Financing overview
Owner/Management experience
Management
Owners and key Organizational Structure
History of Business
Legal structure
Personnel/responsibilities/organizational chart
Policies and procedures
Insurance
Products and services
Production information
Unique selling features
Inventory
Materials, suppliers/equipment
Packaging and distribution
Location information
Marketing
Pricing
Variable cost per unit
Break even analysis
Competition's pricing
Markets
Description of target markets (segment your customers)
Description of industry of trends
Competition
Positioning
Competition
Differentiation
Image statement
Strategies
Goals
Budget
Vehicles
Calendar
Financial
Explanation of start up costs
Record keeping
Cash management and accounting practices
Advisors
Financial Statements
Profit and loss statement
Balance Sheet
Income Statement
Appendixes (Supporting documents)
Resumes
Lease information
Tax documents
Relevant contacts
Reference Letters
Awards, etc.
For additional online assistance in developing a business plan, please visit the following links:
After deciding to establish a business, you must choose the type of legal structure that best suits your business. Most small businesses start out as either a sole proprietorship or partnership, but other options may be better for your particular business. Each structure has trade-offs briefly discussed below. Be sure to contact your attorney and/or accountant to learn the details and legal requirements of each.
Sole Proprietorship This is the simplest and least regulated form of organization with minimal legal start-up costs. One person owns and operates the business. The profits and business income are taxed as personal income. The major disadvantages are unlimited personal liability of the owner for all claims, taxes and debts against the business and the potential dissolution of the business upon the owner's death.
Partnership A partnership is relatively easy to form and can provide additional financial and managerial resources. Each partner is an "agent" for the partnership and can individually hire employees, borrow money and operate the business. Profits are still taxed as personal income and the partners are still personally liable for all partnership debts and taxes.
Limited Partnership A special arrangement, called a "limited partnership," allows partners to avoid personal asset liability. There are special income tax rules for Limited Partnerships. When entering into any partnership, a written agreement is essential.
Limited Liability Company (LLC) A Limited Liability Company (LLC) is composed of one or more "members", which provides the owner(s) protection of personal assets while allowing the owner(s) to be taxed as if they were either partners or a sole proprietorship. Members invest in an LLC in exchange for a percentage ownership interest. An Operating Agreement states what share of the LLC profits and losses each member will receive and spells out the internal arrangements of the business
Corporation The most complex of business organizations, the corporation, acts as a legal entity which exists separately from its owners. While limiting the owners form personal liability, it is creates a "double taxation" on earnings. The corporate also allows capital to be raised through the sale of stocks and bonds and can continue to function as a business even without key individuals. It also enables employees to participate in various types of insurance and profit-sharing plans. Corporations must be registered with the Secretary of State and there are considerable costs associated with creating a corporation.
For additional information regarding the types of legal structures for business visit the Starting a Business section of the Secretary of State's website at: www.ss.ca.gov/business/resources.htm
