Note: Page numbers in italics represent figures such as checklists, worksheets, and sample documents.
A
accounting, 671–689. See also financial statements
about, 671–672
auditing services, 182
automated vs. manual systems, 672–673, 687
components of accounting systems, 676–683
cost accounting, 684
criteria for good systems, 673, 675
internal control policies, 684–686
inventory control and, 680
payroll, 683
record keeping, 688–689
for solopreneurs, 715–716
accounting software, 462
accounts payable, 682–683, 686
accounts receivable, 335–339, 678–680, 730
accrual accounting method, 674–676, 765
advertising. See also marketing strategies
ad size vs. frequency, 531
classified ads, 562–564
direct mail, 536–561
out-of-home, 534
persuasive words in, 530
print, 522–530
radio and TV, 530–536
where to advertise, 521–522
writing ad copy, 522–527
advertising checklist, 569–570
affiliates, 637–638
assets, 697
auditing services, 182
B
baby boomers, 84
background checks, 386–389
backing up data, 455
bailout clauses, 284
balance sheets, 164, 696–698, 699, 732
banking relationships, 51, 228–230, 239–240
bargaining positions, 260–264
bargaining styles, 261–262
bartering, 728–729
Better Business Bureau (BBB), 336
bill collection, 335–339
billboard advertising, 534
blogging, 644–646
bookkeeping. See accounting
bounced checks, 342
brand audits, 509
brand equity, 509
break-even analysis, 710, 711–714
broadcast advertising, 530–536
brokers, 50–51
budgeting, 203–205, 206–207, 466, 519–520, 721–729
business descriptions, 158–159
business insurance. See insurance
business opportunities, 74–79. See also franchising
business opportunity trade shows, 69–70
business plans, 155–167
components, 157–165
ecommerce plans, 470–472
financing and, 165–166
marketing plans and, 514–521, 515, 715
for solopreneurs, 715
updating, 166–167
buying existing businesses, 48–62. See also business opportunities; franchising
business brokers and, 50–51
choosing the right business, 48–50
contracts, 61
evaluating businesses, 51–60, 52–54
family-run operations, 57
financing options, 56
location considerations, 278
negotiating price, 60–62
pros and cons, 48
transitioning to new ownership, 61–62
buying vs. starting a business, 47–48
C
cable TV advertising, 533–535
calendar years, 754
capacity, 237–239
carts and kiosks, 276
cash accounting method, 674–676, 765
cash-flow analysis, 307, 702–704
cash-flow statements, 164, 698–702, 703, 733
catalogs, 552–556
certified public accountants (CPAs), 179–187
chargebacks, 345–346
chart of accounts, 676
check acceptance policies, 339–342
cloud technology, 454
COBRA (Consolidated Omnibus Budget Reconciliation Act)
benefits, 406
cobranding, 282
commercial leases, 284–290
commercial lenders, 230–232
commercial space, 272
communication technologies. See also connectivity technologies
“follow me” phone functionality, 487–488
instant messaging, 493–494
smartphones, 489–491
virtual fax machines, 488
web calling/VoIP, 491, 494–495
which model is best, 495–496
community organizations as research resources, 115
competition, 104–106, 162–163, 278–279. See also unique selling proposition
computer peripherals, 462–465
connectivity technologies. See also communication technologies
equipment and software, 453–456
learning about, 486–487
networking, 456–458
wireless technology, 485–486, 491–493, 496–497
copywriting, 522–527
corporations, 140–148, 146, 153–154, 737, 756
cost accounting, 684
cost of good sold, 693–694
cost-of-living leases, 286
coupons, 566–567
coworking spaces, 269, 272–273, 433, 436
credit applications, 334–335
credit card cash advances, 229, 232–233
credit cards, accepting, 343–349
credit histories, 237
credit unions, 418–420
crowdfunding, 204–205
customer creditworthiness, evaluating, 334–335
customer loyalty, 624
customer retention, 549
customer service, 615–624
cyber-insurance, 354–355
D
deal points, 263–265
debit cards, accepting, 350–352
deductible expenses. See tax deductible expenses
deferred salary, 736
depreciation, 694
design and development plans, 163
direct mail, 536–561
advantage of, 536
catalogs, 552–556
effective inserts, 536–537
mailing lists for, 538–540
newsletters, 556–561
package mailings, 560
sales letters, 545–549, 546–547
direct sales, 76
direct writer insurance agents, 364
discount deal websites, 563
discrimination and harassment policies, 425–428
distribution strategies, 161–162
distributors, 317
document sharing technology, 453
doing business as (dba) names, 147
dollar-control inventory systems, 308
domain names, 472–474
Dun & Bradstreet (D&B), 115–116
E
ecommerce, 470–474, 482–484. See also websites
ecommerce marketing, 109
economic development agencies, 279
80-20 rule, 615
Electronic Federal Tax Payment System (EFTPS), 746
email auto-responders, 475
email marketing, 118–119, 634, 638, 641
employee benefits, 402–420
basic benefits, 402–403
common mistakes in offering, 405–407
family leave, 404
health insurance, 366, 406, 407–411, 749
legal requirements for, 403–404
low-cost benefits, 416–420
retirement plans, 408–416, 739, 749
employee leasing, 391–394
employee manuals, 415
employee policies, 420–428
Employer Identification Number (EIN), 744–745
employing people, 371–400. See also employee benefits; employee policies
after the hire, 389–390
alternatives to full-time employees, 390–400
analyzing job needs, 372–373, 374
building sales teams, 603
cross-training employees and, 389
demographics and, 276–277
describing the job, 373–375, 376–377
determining job requirements, 373–375
EEOC guidelines, 382
employment practices liability insurance, 356
family members as employees, 385, 741
goals and, 371–372
interviewing candidates, 383–386, 388
job applications, 379
outsourcing vs., 399–400
paying employees, 420–423
payroll withholding taxes, 683, 745–748
prescreening candidates, 379–383
reasonable accommodation and, 380
record keeping, 389–390
recruiting candidates, 372–379, 384, 387, 396
reference and background checking, 386–389
virtual assistants, 450–451
workers’ compensation insurance, 355–357, 363, 750
writing job ads, 375–377
endorsements, 528
enewsletters, 556–561, 640, 642
engagement tools, 644–645
entrepreneurial personality, 9–14
equipment
backup computers and drives, 454–456
budgeting for, 466
buying new, 440–443
buying used, 443–445, 448, 458
computer peripheral, 462–465
connectivity-related, 453–458, 485–486. See also connectivity technologies
credit card processing, 348–349
debit card processing, 350–352
fax machines, 434, 463, 464–465, 488
incubators and, 435
mailing, 323–330
mobile devices, 448–449
office productivity software, 461–162
shared office spaces and, 436
shopping for, 467
technology-related, 451–452
equipment deductible expenses, 457, 757
Etsy shops, 41
executive summaries, 158–160
exempt and nonexempt employees, 420–421
expert status, 584
F
Facebook pages, 654, 661–664, 665
factoring, 718–719
Fair Labor Standards Act (FLSA), 420–423
family leave, 404
fax machines, 434, 463, 464–465, 488
financial analysis tools
break-even analysis, 711–714
budgeting, 721–729
gross profit and markup, 706–710, 711, 712–713
sensitivity analysis, 730–734
working capital analysis, 717–721, 720–721
financial guidance, 700
financial management, 691–693. See also accounting; financial analysis tools; financial statements
financial planning, 38–39, 692–693
financial ratios, 725–726, 727
financial statements, 164–165
about, 686–687
balance sheets, 164, 696–698, 699, 732
cash-flow statements, 164, 698–702, 703, 733
creating, 693
income statements, 164, 693–695, 695, 731
financing
angel investors, 215–221
business plans and, 165–166
for buying existing businesses, 56
crowdfunding, 204–205
family and friends as sources, 196–203
for franchise businesses, 231, 236, 251
grants, 252–253
loans. See loans
peer-to-peer (P2P) lending, 204
pitching to investors, 211–212, 213, 215, 220–221
short-term working capital, 718–719
startup costs and, 198, 199–200, 760
venture capital, 213–215
first in, first out (FIFO) inventory accounting method, 314–315
fiscal tax years, 754
50l(c)(3) organizations, 149–154
fixed assets, 682
fixed costs, 706–707
flat leases, 286
focus groups, 117–118, 120–121
Form 940 (Employer’s Annual Federal Unemployment Tax Return), 747
Form 941 (Employer’s Quarterly Federal Tax Return), 746–747
Form 990 (Return of Organization Exempt From Income Tax), 151–154
Form 1099-MISC (Miscellaneous Income), 729, 750, 751–753
Form I-9 (Employment Eligibility Verification), 745
Form W-2 (Wage and Tax Statement), 748
Franchise Disclosure Document (FDD), 66–70, 74
franchising, 63–74
benefits, 63–65
buying existing franchises, 73–74
choosing and evaluating franchises, 65–72, 67–68
definition, 63
financing programs, 231, 236, 251
is it right for you, 64–65
trade shows, 69–70
funding sources. See financing
FUTA (Federal Unemployment Tax Act) taxes, 747
G
general ledgers, 677–679
generational marketing, 85–86. See also niche marketing
gift certificates, 555
government loans, 241–251
grants, 252–253
graphic design, 524
gross profit margin, 706–708
guarantee and surety agreements, 239
H
headlines in ads, 525–527
health savings account (HSA), 408
hiring employees. See employing people
homebased businesses, 268–272, 274, 301, 762–763
hosting services, 479–481
I
ideas for your business, 25, 26–34, 37
image, 291–302
about, 291–292
business cards and, 295, 298–300
exterior appeal and, 293
location and, 280–281
logos and, 294–298
office design and, 292, 293–294
promoting your business and, 590
signage and, 301–302
stationery and, 300–301
IMing (instant messaging), 493–494
importers, 317
income statements, 164, 693–695, 695, 731
incorporating, 146–148. See also corporations
independent contractors (ICs), 399, 748–754
independent craftspeople, 317
independent credit card processing companies, 347
independent sales organization (ISO), 348
Individual Retirement Account (IRA), 413–414
industrial space, 273
industry expert status, 584
installment loans, 225
insurance, 353–370
auto, 359–360
business interruption coverage, 361
business overhead, 364
cyber-insurance, 354–355
disability, 362–363
general liability, 357–359
health insurance, 366, 406, 407–411, 749
life, 362
package policies, 360
property/casualty, 360–361
resources for, 365
umbrella coverage, 361
workers’ compensation, 355–357, 363
insurance agents, 364–368
insurance brokers, 364
insurance costs, 364
insurance planning, 368–369, 369–370
interim loans, 226
internal control systems, 684–686
international cell phone usage, 490, 491
inventory control, 303–321
about, 303–304
accounting systems and, 680–682
avoiding excess inventory, 305–306
buying inventory, 316–321
cash flow and, 307
computerized, 310–313
inventory accounting methods, 314–315
inventory turnover, 313–314
maintaining sufficient inventory, 304–305
tracking inventory, 307–310, 680–682
tracking material costs and, 680
investors. See also financing
angel investors, 216–221
pitching to, 211–212, 213, 215, 220–221
venture capital, 213–215
invoicing, 335–339
iPads, 492
L
laptops, 460–461
last in, first out (LIFO) inventory accounting method, 314–315
lawsuits, 178–179
lawyers, 169–179
leased employees, 391–394
leasehold improvements, 285–228
leasing space, 284–290
legal advisors, 169–179
legal business structures, 137–154
choosing, 137–138, 150, 152–154
corporations, 140–148, 146, 153–154, 756
dba names, 147
limited partnerships, 153
LLCs, 138, 143, 148–149, 755–756
nonprofit organizations, 149–154
partnerships, 138, 140–141, 147, 149, 152–153, 755–756
S corporations, 138, 144–146, 154, 756
sole proprietorships, 138–139, 147, 152, 755
letters of credit, 227
liabilities, 697–698
licenses, business, 142
limited liability companies (LLCs), 138, 143, 148–149, 755–756
limited liability partnerships (LLPs), 147, 153
limited partnerships, 153
LinkedIn, 14, 372, 381, 588, 642, 654, 666
lists, 119
loan agreements, 238
loan applications, 223–253
loans. See also financing
applying for, 233–237
banking relationships and, 239–240
documentation, 238–239
franchising, 231
government, 241–251
lender decision factors, 237–239
sources of, 228–233
special purpose, 250–251
local search, 635–637
locating your business, 267–289
about, 267–268
accessibility and parking, 277–278
building’s infrastructure, 281–282
carts and kiosks, 276
commercial leases and, 284–290
competition and, 278–279
demographics and, 275–277
evaluating locations, 283
existing business locations, 278
foot traffic and, 277
growth potential, 282
image and site history, 280–281
locating your business, 269
operation style and, 275
ordinances, 281
proximity to other businesses and services, 279–280
shared space, 272–273, 433, 436
types of locations, 268–269
utilities and other costs, 282
loyalty programs, 557
M
magazine ads/advertising, 529
mail order companies, 345–346
mailing equipment, 323–330
manufacturers, 317
market research, 101–124. See also targeting markets
about, 101–103
competitor research, 104–106, 107–108
consumer research, 104
government resources, 111–113
industry trends, 103–104
online resources, 110–111
primary research, 106, 116–124
secondary research, 106–116
surveys, 104, 110, 113–114, 116, 117–124
marketing budgets, 519–520
marketing plans, 514–521, 515, 715
marketing strategies, 518–570. See also brand building; online marketing; social media marketing
about, 513
advertising checklist, 569–570
advertising options, 521–522
classified ads, 562–564
co-op advertising, 531, 564–566
developing, 518–519
direct mail. See direct mail
generational marketing, 84, 85–86
measuring effectiveness, 566–569
pre-launch, 520–521
print advertising, 522–530
radio and TV advertising, 530–536
targeting markets, 83–92, 93–94, 160–161, 275–276, 514–515, 517, 520
where to advertise, 521–522
media, targeting, 573–575, 664–667
Meetup.com, 14, 658
mentoring groups, 269–270
mentors, 183
merchant accounts, internet, 349–350
merchant cash advances, 229
merchant status, 334–348
microtargeting, 533–536
mindset, entrepreneurial, 11
mission statements, 92–99
mobile credit card processing, 346–347
mobile devices, 448–449
mobile offices, 272
mobile working, 448
multifunction devices (MFDs), 463, 464–465
N
naming firms, 126–127
naming your business, 125–135
net leases, 286
networking, 586–592. See also social media networking
networks, computer, 453–458
newsletters, 556–561, 640, 642
newspaper ads/advertising, 527–529
nonprofit organizations, 149–154
O
Office of Women’s Business Ownership (OWBO), 243
office productivity software, 461–162
online businesses, 41
online credit card payments, 349–350
online legal services, 177
online marketing, 628–642
attracting visitors, 629–638
permission marketing, 628–629
spam and, 641–642
visitor retention, 638–641
online payments, accepting, 349–350
online presence, 469
online selling, 470–474, 482–484. See also websites
online shipping services, 326
online transaction security, 351
Online Women’s Business Center, 19
open-to-buy, 316–317
operating cycles, 717, 719–720, 720–721
operations and management plans, 163–164
ordinances, 281
OSHA compliance, 423–425
outsourcing, 399–400
overtime requirements, 422–423
owner’s equity, 698
P
paid search services, 633–635
partnerships, 138, 140–141, 147, 149, 152–153, 737, 755–756
part-time employees, 397–399
part-time online businesses, 41
part-time vs. full-time businesses, 35–43
PayPal, 331, 346–347, 350, 752
payroll services, 425
payroll withholding taxes, 683, 745–748
percentage leases, 286
permission marketing, 628–629
place-based advertising, 534
point-of-sale (POS) software systems, 310–313, 483
pop-up retail operations, 275
positioning, 516
positioning statements, 573
postal equipment, 323–330
postal service tools and services, 325
premiums, 559
prepaid legal plans, 175
press kits, 577
press releases, 576–577
pricing strategies, 161
primary research, 116–124
print advertising, 522–530
printers, 464–465
professional employer organizations (PEOs), 392–394
profit, 694
promissory notes, 238–239
promoting your business. See public relations
public relations, 571–586. See also marketing strategies; networking
advantages over advertising, 572
defined, 572
generating publicity, 572–575
image and, 590
press releases, 576–577
publicity photos, 575
social networking with media, 664–667
social responsibility and, 580–581, 582
special events, 578–586
talking to media, 575–578
R
radio frequency identification (RFID), 309
real estate agents, 285
record keeping, 181–182, 389–390, 688–689, 763–765
reference checks, 386–389
referrals, 612
relationship building, 616–617, 668
rentable space, 284
research. See market research
resource sharing, 433
resumes, 380–383
resumes, personal, 13–14
retail space, 272
retirement plans, 408–416, 739, 749
Roth IRA, 413–414
S
S corporations, 138, 144–146, 154, 756
sales, 594–613
closing the sale, 609
cold-calling, 598–602
first-time incentives, 608
following up, 602, 609–610, 616–617
goals in, 162
guarantees and, 594
overselling, 597
pricing higher than competitors, 611
referrals in, 612
sales presentations, 604–609
selling benefits vs. features, 310
speaking effectively, 610–613
traits for success, 595
USP and, 594–598
sales contract negotiation, 265–266
sales letters, 545–549, 546–547
sales revenue, 693
sales taxes, 756–757
Savings Incentive Match Plan for Employees (SIMPLE), 414
search engine marketing (SEM), 629–633
Secure Sockets Layer (SSL) certificates, 351
security online, 351
security software, 461–462
self-assessment, 13–14, 18, 24–26, 27–30
self-employment tax, 139
selling. See sales
sensitivity analysis, 730–734
7(a) Loan Program, 242–243
sexual harassment policies, 356, 426, 427
shared office spaces, 269, 272–273, 433, 436
short-term working capital, 718–721
signage, 301–302
Simplified Employee Pension (SEP) Plan, 415–416
situation analyses, 514–515
Small Business Administration (SBA) loans, 241–251, 246
Small Business Training Network, 244
social entrepreneurship, 582
social media communities, 269–270
social media marketing, 643–655
automating, 653–655
benefits of, 643–644
content marketing, 649–653
definition, 643
engagement tools for, 644–645
images in, 644
social bookmarking, 648–649
surveys, 119
tips for success with, 636
video marketing, 646–648
social media networking, 657–668
about, 657–658
center of influence connections, 667–668
Facebook pages for, 661–664, 665
groups and discussion forums for, 660–661
high-level networking, 658–659
with media connections, 664–667
relationship building, 668
with target market, 659–660
social responsibility, 580–581, 582
sole proprietorships, 138–139, 147, 152, 737, 755
solopreneurs, 16–18, 43–45, 269–271, 715–717
spam, 641–642
startup costs, 198, 199–200, 760
state income taxes, 747–748
step leases, 286
story angles, 573–574
stress, 40–42
structuring your business. See legal business structures
T
tablets, 492
tag systems, 308
target market connections (TMC), 659–660
targeting markets, 83–92, 93–94, 160–161, 275–276, 514–515, 517, 520
tax deductible expenses, 757–766
business operating expenses, 757–759
health insurance premiums, 366, 749
home office related, 762–763
meals and entertainment, 761
record keeping, 763–765
retirement plans, 408–416, 739, 749
travel, 762
vehicle use, 759–761
tax planning, 182, 743–744, 765–766
tax years, 754
taxes. See also legal business structures
deductible expenses, 749, 757–763
independent contractors and, 748–754
legal business structures and, 755–756
nonprofit organizations and, 149–154
paying yourself and, 737
record keeping, 763–765
retirement plans and, 408–416, 739, 749
sales, 756–757
state income, 747–748
taxpayer identification numbers, 744–745
teleworking, 448–449
temporary employees, 394–396
testimonials, 528
testing job candidates, 388
timing of starting a business, 23–24
tip credits, 421–422
trade associations, 109
trade creditors, 718
trade shows, 69–70, 305, 316, 318
trolling, 663–664
Twitter, 494
U
Uniform Franchise Offering Circular (UFOC). See Franchise Disclosure Document
unique selling proposition (USP), 594–598
unit-control inventory systems, 309
usable space, 284
V
variable costs, 706–710
vendors as financing source, 232
video marketing, 646–648
viral articles, 651–652
virtual assistants, 450–451
virtual fax machines, 434, 488
voice mail, 475
VoIP (voice over internet protocol), 491, 494–495
W
W-4 (Employee’s Withholding Allowance Certificate), 745
web businesses, 470–474, 482–484
websites
browser compatibility issues, 481
checklist for successful, 483
creating, 474–477
creating and organizing content, 477–479, 480, 482
credibility and, 475–476
designing, 478–479
hosting services, 479–481
privacy practices, 483
security practices, 481
shopping carts on, 482–483
turnkey solutions, 475–476, 480
win-win compromises, 264–265
wireless technology, 485–486, 491–493, 496–497
Women’s Business Centers, 243
working capital, 717–721
workplace safety, 423–425
Y
year-end financial statements, 698