HOME BUSINESS REPORT
BUSINESS STARTUP 2
By Michelle J. Bloom
If you've been wanting to start a business but are feeling
overwhelmed with all the tasks ahead of you and don't know where
to begin, read on.  Last month I wrote about two of the four
categories of organizing your start-up tasks.  It talked about
the emotional and developmental categories and this article will
consider the other two - legal and administrative.  
As an overview, in the emotional category, we need to manage our
emotions- such as financial concerns, fears, doubts and successes
-  so they do not block our decision making process.  The second
category is development, considering such things as locating &
organizing office space, research, volunteer work within the
field of your interest, pricing, long & short term equipment
needs and writing the business plan.
There are some legal considerations that we all need to be aware
of.  One example is Zoning Regulation, if you are planning to be 
a homebased business, short term or long.  You can call your 
local municipality for guidance on this issue.
You also want to consider how to legally set your business up. 
Some of your choices are sole proprietor, S Corporation, Limited
Liability Company and, if you have a partner, you may choose from
different forms of Partnerships.  The pros and cons of each of
these may vary from state to state, so you should look for a 
reference that addresses the situation in your state.  In 
Minnesota, this (and other) information can be found in a book 
published by the Minnesota Department of Trade and Economic 
Development called, "A Guide to Starting a Business in 
Minnesota".  If you choose to be a sole proprietor - the simplest 
form - you may need to file with the state to do business under 
an assumed name (in Minnesota, the Secretary of State's office 
handles this) if you want to do business under a business name 
rather than your legal name. This doesn't cost very much and it 
is meant to keep the consumer safe; the business name is linked 
to a person so the state can find you if there are any problems 
or complaints.
Another legal consideration is your contract; this is your
agreement with the client as to the work you will be doing, the
amount of payment, and when the work will be accomplished.  
Depending on the type of work you do, you may want a lawyer to
take a look at your contract or at least find your industry
standard contract and adapt yours to suit it.  
The administrative category is predominantly based on the
business of doing business - the things you want to do on a
regular basis, keeping them up-to-date.  Bookkeeping is a good
example.  Every month you want to balance your checkbook(s) and
categorize your deductions.  Make sure you keep a cash journal as
well, along with all the receipts.  
Time management is a skill we can all brush up on.  Watch the
Community Education newspapers and business calendars for
seminars on time management.  The more organized you are, the
closer you are to a successful venture.    
Insurance is something that everybody has questions about.  The
ultimate thing to do is find a good insurance broker who knows
about all types of insurance.  Professional insurance is one you
don't want to overlook.  If you are a consultant, for instance,
you want to make sure you have Error & Omissions (E&O) insurance. 
You also need to consider health, dental, renter/home owner,
disability (especially important when you are self-employed), and
life insurance - if you have dependents.  
Again, these are just some of the things you need to consider. 
Almost anything you can think of will fit into one of these
categories.  It is a good way to organize all of your thoughts
and energies while you are going through the start up phase.
If you missed last months article, please feel free to call me
and I will send you a copy or, as always, please call with any
questions.  
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Michelle J. Bloom is founder of Creative Business Consulting, 
a homebased and small business consulting firm and resource center.  
You  may contact her with your questions and comments at 
(612)722.2213 or by e-mail at michelle.j.bloom@wizinfo.com.
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This article first appeared in print, in a somewhat different
form, in SOUTHSIDE PRIDE.
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