Small Business Services

Start a Business

Roanoke Regional Small Business Development Center (SBDC) provides assistance to aspiring business owners. The Center will help those wishing to open a small business understand the requirements for going into business, financial management, marketing issues and planning, as well as help with business plan development and implementation.

Roanoke Regional SBDC and its supporters have published a "Small Business Start-Up Book " which provides helpful information on the various steps required to start a small business. The easy-to-read manual offers tips for the person who is just considering the possibility of starting their own small business and to the veteran entrepreneur who may be considering opening a new branch or expanding a current operation. Roanoke Regional SBDC also has a special publication for doing business in this area. This publication lists the special steps  you need to follow to start a business in Roanoke and surrounding areas.

A simple pre-registration process is required to download the Small Business Start-Up Book which is available in PDF format. Get the Start-up book (PDF) to begin your journey into small business ownership. See an SBDC counselor for the publication on doing business in this area.

Steps to Starting a Business

Are you sure you are ready to start a business? Answer this self evaluation to see if you are ready for the next step.

Why do you want to start your own business?

1. Freedom from 9 - 5 job?
2. Do you want to be your own boss?
3. Do you dream about doing what you want and when?
4. Do you want to make more money?
5. Are you bored with your current job or career?
6. Do you have a product or service you feel there is a demand for?

Self assessment: Is business ownership for you?

1. Are you a self starter and self motivated?
2. Do you get along with different personalities? (customers and employees)
3. Are you good at making timely decisions?
4. Are you emotionally and physically capable of working long hours?
5. Are you well organized?
6. Do you have the full support of your family?
7. Are you good at multi-tasking?
8. Do you have the background/knowledge to operate this business?
9. Do you possess general business skills?
10. Do you meet the 8 C's of lending?
    1. Credit: Is your personal credit good?
    2. Collateral: Do you have something of value to secure a loan with?
    3. Cash Flow: Will the business have the cash flow to pay back the loan?
    4. Capacity: Do you personally have the ability to pay back the loan?
    5. Capital: Do you have the necessary caital for a down payment?
    6. Character: Are you a person of good character that a back or investor could trust?
    7. Commitment: What is your personal commitment to making this business succeed?
    8. Conditions: Are there any special conditions that can affect this business? (economic, legal, etc.)
       

Explore your idea: Do you have a viable business idea?

1. Have you defined your business need?
2. Do you know what profuct or service you want to sell?
3. Is your idea market driven? (Is there a need for your product? Is there a market for your product and/or service?)
4. Can your business be legally operated in the area?
   1. Any zoning requirements?
   2. Do you need to have special licenses for business or employees?
   3. Are there any othe legal restrictions?
5. Are you able to make agreements with the vendors that will provide you your products?
   

Have you analyzed your market?

1. Have you determined who your tarhet market it?
2. Does your service or product satisfy an unfilled need?
3. Does your product or service serve an existing market in which demands exceed supply?
4. Have you determined who your competition is?
5. Will customers purchase from you rather than competitor?
6. Can you find a location that will serve your needs?
7. Can you promote your business cost effectively?
8. Is the market for your product or service growing?

Take Action: If you answered yes to most of these questions and still want to be your own boss, then you are ready for the next steps.

1. Make an appointment with the SBDC: Request for Counseling
2. Select a business legal entity
3. Decide on a business name and research if it is available
4. Write your business plan
5. Obtain necessary capital
6. Open for business

Business Plan

Everyday, bankers see people who want a business loan for the "opportunity of a lifetime" that "just can't fail." These want-to-be entrepreneurs usually attempt to explain their notion orally, and have don no research on the feasibility of the idea. In order to be taken seriously about your business loan, it is imperative to write a formal business plan.

Cover Sheet

Table of Contents

Executive Summary

1. The Business
   1. Description of business
   2. Market description
   3. Competition
   4. Operating procedures
   5. Personnel
   6. Management team
2. Financial Data
   1. Loan applications
   2. Capital equipment and supply list
   3. Balance sheet
   4. Breakeven analysis
   5. Pro-forma income projections (profit & loss statements)
   6. Three-year summary
   7. Detail by month, first year
   8. Detail by quarters, second and third years
   9. Assumptions upon which projections were based
   10. Pro-forma cash flow
3. Appendix
   1. Tax returns of principals for last three years
   2. Personal financial statment (all banks have these forms)
   3. For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
   4. Copy of proposed lease or purchase agreement for building
   5. Copy of licenses and other legal documents
   6. Copy of resumes of all principals
   7. Copies of letters of intent from suppliers, etc.
   8. Brochures of your current business
   9. Written estimates for leasehold improvements or construction
   10. Job description of key employees
   11. Employee handbook
   12. New articles about your business
   13. Sample of existing ads
   14. Photos of existing business
   15. Marketing research data