Here are the basics you need to consider when starting a new business. Please note – for businesses in certain categories there are additional regulatory requirements.

GOVERNMENTAL REQUIRMENTS

◘ City Business License (if business is located within municipalities of Hamilton County)

◘ County Business License

◘ State of Tennessee Resale Tax Number

◘ State of Tennessee Employer Identification Number

◘ Federal Tax Identification Number (sole proprietors may use Social Security Number)

◘ Workers Comp Insurance (for companies with more than 5 employees)

◘ State of Tennessee Regulatory Board permits of licenses

LEGAL REQUIREMENTS

◘ State Incorporation Resolution (only if company is a corporation)

◘ State Limited Liability Company Resolution or Partnership Agreement for Partners

◘ DBA registration

◘ Attorney (recommended)

◘ Copyrights, patents, trademark registration

ADMINISTRATIVE REQUIREMENTS

◘ Bookkeeping system/procedures (for keeping track of gross sales, expenses, and income)

◘ Accurate filing system (for all documents of business activities, informational material, etc.)

◘ Tax Accountant (if you don’t file all tax forms yourself)

◘ Stationary and business cards

◘ Forms (order, invoice, etc.)

◘ Policy Manual (explanation of all company policies including employee and procedural)

◘ Insurance – includes liability, professional, disability

◘ Office supplies

BUSINESS OPERATIONS

◘ Business Plan (should be updated annually), which includes:

• Description of the Business (which is the actual function of the business)
• Company Goals (short- and long-term)
• Marketing Plan (who your customers are, how much they will buy, how you will sell to them, advertising and promotion; market trends and conditions including competition)
• Financial Plan (projected start-up or expansion costs, profit and expense statements and cash-flow analysis)
• Operations Plan (how your product or service is produced and delivered to your customer)
• Management Plan (how the company will be run, who performs which functions – management, administrative, production, sales, etc.)
  

PHYSICAL LOCATION NEEDS

◘ Space needs including any renovation and improvements

◘ Telephone including the system and installation

◘ Fax machine including the telephone line

◘ Computer and software

◘ Transportation (auto/truck/van; lease or purchase, mileage)

◘ Furniture/display racks/cash register

◘ Other machinery and equipment (including installation costs)

PROMOTION NEEDS

◘ Brochures or other printed materials

◘ Logo

◘ Grand opening/ribbon cutting

◘ Advertising

◘ Public Relations

◘ Sales Force – includes personnel, in-house customer support, and materials

CHECKLIST FOR OBTAINING FINANCING

Here are the things that financial institutions and other lenders may require from a business seeking financing.

◘ Business Plan (current), which includes:

• Description of the Business (which is the actual function of the business)
• Company Goals (short-and long-trm)
• Marketing Plan (who your customers are, how much they will buy, how you will sell to them, advertising and promotion; market trends and conditions including competition)
• Financial Plan (projected start-up or expansion costs, profit and expense statements and cash-flow analysis)
• Operations Plan (how your product or service is produced and delivered to your customer)
• Management Plan (how the company will be run, who performs which functions – management, administrative, production, sales, etc.)

◘ Financial Statements, which includes:

• Balance Sheet, profit and loss statement for last three years
• A start-up business will need to include Personal Financial Statements for all who own more than 20% of their business.
• If buying an existing business, include federal tax returns or financial statements for three years.

CHECKLIST FOR DETERMINING TRAINING NEEDS

Here is a brief list of occasions when training may be appropriate for you or your employees. A regular review of skills is important in today’s marketplace.

◘ Computer skills updating

◘ Specialized equipment skills updating

◘ Technological developments

◘ Government regulations

◘ Certification programs

◘ Management – ongoing and at critical growth points in the company