Frequently Asked Questions
Q: Dead End Job, Low Salary—How Do I Start My Own Business?
I am currently working for a small TV station in NC where I have been for the past 5 years. I make $7.00 per hour. It seems that if you are a woman and even if you can do the same job as a man they still hold you back. The same job I do, a younger man than myself makes at least $9.00 and he has only been at the station for 2 years. I am 51yrs old and don't know what to do or where to go. I would like to open a small breakfast and lunch eatery. But because of my salary I cannot get a loan. Please, can you help me?
A: It is true that many women are still paid less for the same job and the same work as a man. It is against the law but that does not mean that it does not still happen. Your breakfast and lunch cafe sounds like a great idea. North Carolina has many small loan programs in rural communities that are supposed to work with women such as yourself to get a business up and going. One program is called Self Help in Durham. The other is the North Carolina Rural Center in Raleigh. You can look up the state on the web site www.microenterpriseworks.org and get the numbers for these organizations. Ask about your county to see if there is a program near you.
Count Me In provides small loans but it probably is not enough to start a restaurant. One idea is to take a class at a Small Business Development Center (check the blue pages for a listing under United States -Small Business Administration) to write a business plan to figure out how much salary you could make in the restaurant. The business would provide the income to pay off the loan - not your salary. This information would be needed to approach any loan program. Another idea is to get a cosigner or partner for the loan. Keep trying. Something may work out.
Q: How Can I Work Online From Home?
I am a widow and I have had bad luck since my husband passed away. Following his death, I fell ill and I was hospitalized and out of work for a large amount of time. I want to get ahead but it seems like every time I do, something else happens. I now support my elderly mother. I was also forced to move recently. I want to start a business at home working on the Internet. I work now as an administrative assistant. What can I do? I need a computer at home and software to begin. I cannot get a loan or get credit because of a recent bankruptcy. I have 6 year to go on that. Can anyone help me?
A: Sounds like you have been through a lot. It also sounds like you are a survivor and keep going and solving problems, making life work. I want to caution you about the Internet business - most of the opportunities out there are scams - any of those work from home ideas that you see posted charge you money and you never make a dime. Many have been investigated and reported on by CNN so please be careful. They actually prey on people such as yourself who have desperate financial needs and poor credit.
I do not know where you live but would suggest that you contact a local micro enterprise program for business training to help get an idea that would work for you. Go to www.microenterpriseworks.org to find an organization in your community that might help. They could help you sort out ideas and provide loan money - even with the bankruptcy. It sounds like you have administrative skills - maybe there is training or something in that area you could do for local small businesses - keep their lists, send out invoices, etc.
Q: Assistance with Finding Loans and Making a Business Plan for Opening a Restaurant
I came across your web site while doing some research on small business loans. I'm thinking of opening a small restaurant and I know there are some government sponsored Small Business loans out there especially for women. Can you help out with that? I'm also looking for a guideline for a business plan, specifically for a restaurant.
A: There is a business plan outline on our web site. The SBA and INC Magazine have booklets on business plans and I bet they have one on restaurants - try your local Small Business Development Center under the SBA in your phone book for a copy. Also try library for copies. There are so many by industries that I do not have one to recommend to you. As to first steps, do not forget your local health department, all of the licensing and requirements are important to understand. As for SBA loans, you have to go to local banks that are SBA certified for a loan. The SBA does not provide direct lending and does not have any special loans for women. They target existing funds towards women as a priority but they do not lend to women exclusively. One of the issues will be starting a restaurant - the SBA is not fond of these types of businesses because of the higher failure rates. Go prepared with a solid plan. To find a SBA lender go to their site at www.sba.gov.
Q: Tax Advice
Help! I've been trying to get my own business started for six months. I feel good about my business plan, marketing strategies, etc. Where can I go to get affordable accounting/tax advice? I don't want to suddenly be surprised by big tax bills that I didn't plan for and can't afford. Also, what's a good accounting software or method for a beginning business?
A: Good accounting software is Quick Books - it really works and you can program with your type of business. As to an accountant - find an independent working from home who will not charge you big fees and works with small businesses. You want someone who does taxes and has experience - not a bookkeeper but an accountant/tax specialist. Ask other small businesses who they use. Check out the yellow pages and interview several - each one will give you information to use with the next and you will find someone.
Q: I want to quit my full time job to devote more time to my dance business, but I am concerned it may not work, and I will be left without and income.
It is tough to make the transition from a paying job to the unknown business. Some people save up money so they have 6 months of living expenses paid. Others get family and friends to help them with living expenses. The other alternative to find a job that starts after 6 PM, start the mobile dance studio from 3-6 and work either before or after. It seems like you will have to allocate the day so some part of it is your business and some part is your job. Maybe you will have to give up the morning work for a job, if it is not paying enough to cover your living expenses.
A: A mobile dance studio can work if you can get the right location and the right set of clients. More upscale day care centers, after school programs at schools, and even malls in their community rooms can be possibilities. Your first challenge is to create a marketing brochure - a Kinko type 3 fold with services, prices and experience. A color photo or two of a lesson might be good. Then go out selling to see who would sign up. You might will find out directly from the customers what the potential is for both the dance concept and your income. I am a firm believer in trying out selling before you quit any jobs or change your schedule.
Q: I am starting abusiness running errands and am interested in getting bonded. I know that cleaning services use this a lot, but I am unsure exactly what bonding is and who bonds people... Help!! My insurance agent wasn't even sure who I should call.
A: Bonding Insurance covers you if you or one of your employees steals money from a client. It is usually obtained when you are handling money, delivery of items, or handling items for someone else. It is obtained from an insurance agent. You need a business insurance agent, try looking in the yellow pages, and get several bids as coverage will vary. A local agent will obtain bids from national companies that provide this type of coverage. The cost will vary depending upon on your industry, specs such as how much money, and the amount of liability you want.
Q: I am considering going into the import/export business, what are my options?
A: Import/Export Businesses can be interesting - it depends which end of the industry you intend to enter. You have two options - one is importing or exporting items from other countries and selling them - the other is to be a sales rep for a group of products. Import/Export classes are offered by most state government offices under Economic Development programs. The Small Business Administration also offers classes and a great deal of information.
Try www.sba.gov for some information. The women business center site at www.onlinewbc.org may also have information for you.
I would recommend finding a class and taking it to learn all the technical issues related to tariffs, taxes, import rules, etc... You may also find a good freight forwarder to help the transition. Sales rep take a commission off what they sell. They call on stores, go to the show mart such as the gift mart in cities such as New York, Atlanta and San Francisco to represent the product and sell it to stores.
Most people begin with a manufacturer or distributor to gain the contacts and practice. Try talking to some store owners in the area of product lines you would like to represent. Use your current contacts through your job to see what might be possible.
Q: I want to sell perfume. Should I have a corporation?
A: I would suggest you consider incorporating the business to protect your personal assets. A corporation will provide some protection with the type of product you are selling. You will also need insurance and need to work with a reputable agent to obtain some bids for this. I do not know about the FDA approval but if this is a new product that you are manufacturing there will be approval requirements. I would suggest calling the FDA directly.
You will also need a reputable manufacturer - a plant that makes perfumes on contract - they should know what you have to do. As you state, this product is sold to the public so there are health and safety laws to follow. The state may also have some requirements.
A word of caution - it is very hard to get into retail stores - especially large ones - they buy from know companies that have spent a great deal of money on marketing. Small retailers tend to go to "market" where they shop. You would need a sales rep to display your product. New York, Atlanta, Chicago, LA and San Francisco have major apparel and gift markets. Please really investigate the sales end of this to see what is possible.
Q: New Product Development - Where to Start
I am writing you because my 2 sisters and I have an idea for a product. The problem is that we have no idea how to go about having this idea made. We did a drawing of it and as far as we know there is nothing like it on the market. We know that we would need either a plastic or rubber company to make this product for us. Can you please help us? We are three sisters who desperately want to be entrepreneurs and have financial independence. We are very hard workers and we are very much ready to work hard for ourselves so we can make a future for our children. We have many ideas and dreams, but we need help making them come true. Please help us!
A: It is hard to advise you without knowing the product. There are several ways to find manufacturers. I would suggest you start in the yellow pages under manufacturing and call some, explain what you are doing and ask if they do contract manufacturing. If not, ask them to refer you to someone that does. There should be ads so you can tell who makes what. Try your State Department of Economic Development. They should have a list of manufacturers or a way to help you locate one. The local Chamber of Commerce is another way to locate businesses. There are national trade groups. Try a search for national association and rubber - they might have listings of manufacturers. The whole process is a little like being a detective - you just keep asking and asking until you find what you want. Note, you may need an engineer - consulting firms do this to make the drawings and specifications for your product. A manufacturer may need a prototype so you may start with the engineer to get the product designed for manufacturing. In the process of showing your product, get people to sign a confidentiality agreement that they will not share information on your product. Any consultant should have a boilerplate agreement to share with you. Also get prices and bids from manufacturers - it can vary and you want to get the best price possible. Make sure you have a target market and sales plan. I have worked with so many people that buy a garage full of product and then have no way to sell the items. Get your sales ideas in place.
Q: Starting a Book Store
I am seeking advice about starting an independent mystery bookstore. Are there resources particular to this type of business?
A:I do not know of any resources for mystery bookstores. I do know that there are books on running a bookstore - INC publishes one and the other is by the SBA. Try the library or your local Small Business Development Center (SBDC) for a copy. The SBDC would be in a community college.
Q: Starting a Partnership
I would like to explore ways to get into a partnership with two other people. I don't know where to begin and need some advice. Basically, what is the best source for attaining financial loans for people like me?
A: One of my first suggestions is to get a good partnership agreement with your two partners. The agreement should cover what each is putting into the business, your roles and responsibilities, the value of your contribution or ownership percentage and how you will exit the partnership should one of you want out. Get it writing. Attorneys in business or contract law can write one for you. It will save pain and suffering later on. Too many partners do not have exit strategies and this can create all kinds of legal battles and sometimes destroy the business for others. Check out our Business Education info with a checklist for starting a business on the Count Me In web site. There is a great list of what you need to do.
As for getting financing, there are several options. One is raising money from family and friends, using your credit cards, taking out a bank loan, saving your own money or going to SBA certified banks for a loan. There are no special loan programs for women unless there is a nonprofit organization in the area that might help women. You are welcome to look at Count Me In and our loan information.
Q: Renting a Retail Space
I have a home based business that I would like to now take a step further into opening up a retail store. From what I understand sometimes when you lease a retail store you can negotiate with the landlord to waive the first couple of months for free while you establish your inventory and start up. What is this process called and do you have suggestion?
A: Good accounting software is Quick Books - it really works and you can program with your type of business. As to an accountant - find an independent working from home who will not charge you big fees and works with small businesses. You want someone who does taxes and has experience - not a bookkeeper but an accountant/tax specialist. Ask other small businesses who they use. Check out the yellow pages and interview several - each one will give you information to use with the next and you will find someone.
