SBIC - Ms. Biz answers your letters

Ms. Biz offers advice for the small business owner with answers to
frequently asked questions. If you would like to submit a question,
please address your correspondence to:

Ms. Biz
Small Business Information Center
Cecil County Public Library
301 Newark Avenue
Elkton, Maryland 21921
Or email: sbic@ccplnet.org

Topics:

Ms. Biz #1: Rational reasons don’t always lead to right decisions

Ms. Biz #2: Is it better to be a woman and own a business?

Ms. Biz #3: Business plans to take to the bank

Ms. Biz #4: Free Small Business Grant Money????

Ms. Biz #5: I want to start a new business. Where do I begin?

Ms Biz #6: Business help in the library

Ms. Biz #6

Business help in the library

Dear Ms. Biz,

Where can I find information on business competitors in the local area (Cecil County, Maryland) in the electrical business? Additionally, would you be able to find the number of new homes constructed in the area?

Sue

Dear Sue,

That’s a very good question. A great place to start the search for information on your competitors is your local library. Surprised? The Cecil County Public library has many online resources that are accessible at the library or from your home.

A good resource for identifying competitors or customers is to use the Reference USA database. Reference USA contains information on approximately 13 million businesses. Using advanced searching, you can narrow the search to type of business, county, city or state. The type of information you will find includes the company name, address, manager, CEO, sales, year established and even the latitude and longitude of the company headquarters. General information on the electrical contracting industry can be found in another CCPL database: vBusiness and Company Resource Center.

To find new housing statistics, I would recommend you use the U.S Census
on the web (http://censtats.census.gov/bldg/bldgprmt.shtml). You will find monthly
statistics of building permits for new single family homes. If you need additional
assistance, the Cecil County Public Library has trained business librarians you in
finding more information. Good luck.

Sincerely,

Ms. Biz
Cecil County Public Library
Small Business Information Center
301 Newark Avenue
Elkton, Maryland 21921
410-996-5600, extension 128
sbic@ccplnet.org

Ms. Biz #5

I want to start a new business.  Where do I begin?

Dear Ms. Biz,

	I have always wanted to own a bookstore.  Recent events
in my life make it possible to be able to pursue this dream.
Where do I begin?

CLM

Dear CLM,

                Starting a business can be overwhelming to a novice.  The first and most
important thing is to sit down and think about the “w” questions; why do I really want
to start a business, what kind of business do I want to start; where will I set up my 
business, and what do I need to do to accomplish my goal of owning my own business?
You should also think about how you will finance the business.

     	Your local public library is a good place to start.  Public libraries today have
books, audio tapes, CD’s, videos and access to business databases and the internet.   
Some libraries have business resource information centers where a business librarian
can help you find the information you are looking for.  Small business information centers
like the one at Cecil County Public Library can also direct you to other organizations within
the community that can help you find financing and other information pertinent to starting a
small business.  Check on programs offered by organizations within your community
that are geared to starting a small business. Cecil County Public Library has offered
programs on affordable marketing, patents and developing beneficial relations with banks.


	As you peruse the information you will find that the first thing you must have is a
business plan.  There are books on business plans as well as free sample business plans
on the internet.  Be careful as some websites offer free business plans and some want you
to pay to obtain them.



Sincerely,

Ms. Biz
Cecil County Public Library
Small Business Information Center
301 Newark Avenue
Elkton, Maryland 21921
410-996-5600, extension 128
sbic@ccplnet.org

Ms. Biz  #4

Free Small Business Grant Money????

Dear Ms. Biz,

There is an ad in the local paper advertising Free Cash 
Grants to start your own business.  I called the phone 
number listed but was told to either send them $159.00
or give them my credit card number for a book listing
free grants or loans to start your own business. 
Is this legitimate?

LJM

Dear LJM,

	Is there really FREE money to start your own business?  Not likely!  If there is,
I have ocean view property to sell you in Arizona!

Small ads that appear in the classifieds of local newspapers which state:  ***$$FREE
CASH GRANTS!$$*** and provide an 800 number to call are usually scams.  I 
researched the phone number you gave me and discovered that same phone number
had at least 8 different extensions. The folks at the Small Business Information
Center and their partners, SCORE, SBA, and Cecil Community College are trying
to make certain that those interested in starting a small business are not ripped off.

The majority of foundations provide grants to nonprofit organizations, NOT individuals.  
Federal grants are usually given to other federal or state agencies for major projects.  
There is a difference between a "loan" and a "grant," although the advertisements use
the words interchangeably.  Grants do not have to be paid back.   You probably don't 
qualify for a grant to start a business.  Loans do have to be paid back.  A bank, the 
Small Business Administration, or our representative from SCORE can help you learn
what is available.

Finally, if you feel you have been scammed by a deceptive advertisement, contact the
Federal Trade Commission at 1-877-382-4357, or online at
http://www.ftc.gov/ftc/consumer.htm and file a complaint.

Sincerely,

Ms. Biz
Cecil County Public Library
Small Business Information Center
301 Newark Avenue
Elkton, Maryland 21921
410-996-5600, extension 128
sbic@ccplnet.org

Ms. Biz  #3

Business plans to take to the bank

Dear Madam,

I'm currently in the UK and I was looking into starting up a
bagel shop in the area I live in.  I was on the internet and
I was looking into devising a business plan to propose to
the bank and I saw on the library website of yours that there
is a section for a bagel shop in the Business Plan Handbook
in R 658.4 BUS, V.5.  I was wondering if there was any way
you could email me this information as I'm desperate for
some advice, or if you could point me in the right direction
to getting information on this in the UK.

Many thanks,

J.

Dear J. in the UK,

I would be glad to provide you with a copy of the Bagel Shop business plan found in 
our R658.4 BUS, Vol. 5, Business Plan Handbook.  This is only one of many references
that you can find to guide you in writing your own personal business plan.


There are additional online sites that you can reference:

www.bplans.com – This has a collection of free sample business plans, however,
I did not find a “bagel shop” in the list.

www.sba.gov – Under “Business Planning” you can find a basic outline and
an online business plan workshop.

www.score.org – Under this location look for “Business Toolbox” and then
“template gallery”.  This will lead you to sample business plans, but is particularly
useful in offering templates to calculate many of the financial analyses you need. 
These can be downloaded into Excel and then printed.

www.entrepreneur.com – The section under “business plans basic” discusses
in detail how you analyze your needs and write up each of the component parts
of a business plan.

For a really good site to identify bagel market statistics and find a bibliography of articles
on the bagel industry, try the following website:

        http://www.aibonline.org/resources/statistics/bagel.html

Also, trade associations track and understand their industry well. They often produce
industry studies annually or less often.  There is an American Bagel Association you could
contact to try and locate some industry comparables and industry trends.  You can probably
locate a similar trade association in the UK.

American Bagel Association 
111 West First Street
Dayton, OH 45402 
Telephone: 937/222-3646 or 800/844-8493 
Fax: 937/222-3354 
Ed Kazak, President

Good luck with your venture.  If you need further help, remember your local library
 can also help.

Sincerely,

Ms. Biz
Cecil County Public Library
Small Business Information Center
301 Newark Avenue
Elkton, Maryland 21921
410-996-5600, extension 128
sbic@ccplnet.org_

Ms. Biz #2

Is it better to be a woman and own a business?

Dear Ms. Biz,

My husband runs a small computer shop as a sole proprietor.
We want to convert to an LLC.  Would being owned by a woman
myself)be more advantageous for us in doing this, or should
we keep things as they are with my husband as the owner?  
I appreciate your time and consideration.

Thank you,

C.

Dear C.,

Typically, small business owners do just what your husband did, set up the business as a sole
proprietorship. It’s the easiest and least expensive business formation for a one owner business.
However, there are some disadvantages. The owner and the business are taxed as one entity.
The owner pays taxes on any profits from the business on his/her personal tax form. There are
fewer opportunities for tax advantages. For example, an owner’s medical insurance premiums
are not directly deductible from business income. The owner is also responsible for all debts and
liabilities of the business.

The limited liability partnership, the newest form of business structure, would allow you and your
husband some useful advantages. You could be equal partners, or split the ownership unevenly, i.e.
1% female owner and 49% male owner. This could be useful if there are government contracts you are
seeking that give advantages to female owned businesses. Limited partners are personally exempt
from the debts and liabilities of the business. However, it is more complicated and expensive to file
the papers necessary to be an LLC.

This issue is one best discussed with your lawyer. For further information, refer to this library book,

346.73 Anthony Mancuso. Nolo’s Quick LLC (2003)

…or view these websites:

Maryland Small Business Development Center
www.new.towson.edu/sbdc/resources/BusinessEntities.asp

Maryland State Department of Assessments and Taxation
www.dat.state.md.us, and choose “Businesses”

“The Guide to Legal Aspects of Doing Business in Maryland”
www.oag.state.md.us/legalaspects.doc

Good luck!

Ms. Biz
Cecil County Public Library
Small Business Information Center
301 Newark Avenue
Elkton, Maryland 21921
410-996-5600, extension 128
sbic@ccplnet.org

Ms. Biz #1

Rational reasons don’t always lead to right decisions

Dear Jane and Joe,

When making business decisions, always look at as many facts and as much information
as you can gather. Go to the library and do your research. Talk to experts who know about
your issue. Use your brain to think, calculate and consider all of the evidence you can find to
make a decision. Then, listen to your heart, or your gut instincts. It is passion that drives
most entrepreneurs. Often your heart, your passion, has the courage and the drive to make
something succeed, despite all odds.

A recent radio talk show quoted the results of a survey of older people as to what they wished
they had done that they didn’t do. The surprising answer was, “…taken more chances.” They
wished they had taken more risks. They wished they had followed their heart more often.
Rational reasons are only part of successful decision-making.

Until next time,

Ms. Biz
Cecil County Public Library
Small Business Information Center
301 Newark Avenue
Elkton, Maryland 21921
410-996-5600, extension 128
sbic@ccplnet.org